HMRC amends Self Assessment deadline penalty

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HMRC have announced that they are giving Self Assessment taxpayers filing their 2020/21 tax returns more time to pay if they need it by effectively extending the deadline through a penalty waiver.

The pandemic is putting strain on taxpayers and their agents, recognising this the HMRC are waiving penalty fees for those who need more time to complete and file their return online.

The changes:

The deadline to file and pay officially remains 31 January 2022. The penalty waivers will mean that:

  • anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February
  • anyone who cannot pay their Self Assessment tax by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April

The HMRC are recommending that taxpayers aim to file their return on time as interest will be payable from the 1st of February. This is good news for traders under pressure from the challenges caused by COVID-19 who no longer have to worry about receiving a penalty for missing the usual January 31st deadline.

“We know the pressures individuals and businesses are again facing this year, due to the impacts of COVID-19. Our decision to waive penalties for one month for Self Assessment taxpayers will give them extra time to meet their obligations without worrying about receiving a penalty.”
– Angela MacDonald, Deputy Chief Executive and Second Permanent Secretary, HMRC

Self Assessment timeline:

  • 31 January – Self Assessment deadline (filing and payment)
  • 1 February – interest accrues on any outstanding tax bills
  • 28 February – last date to file any late online tax returns to avoid a late filing penalty
  • 1 April – last date to pay any outstanding tax or make a Time to Pay arrangement, to avoid a late payment penalty
  • 1 April – last date to set up a self-serve Time to Pay arrangement online

You can find out more information on the waiver here.


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