Self-Assessment deadline moved to end of February

Incase you hadn’t heard the news and are still either putting off your self-assessment or frantically trying to get things together to file, the Self-Assessment deadline has ‘effectively’ moved to the end of February.

The Government has announced that late payment penalties are to be waived for one month. They are still encouraging everyone to aim to file by January 31, 2022.

But people won’t be penalised for late filing for one month.

If you need extra time due, you now have up until February 28, 2022, to complete your 2020 to 2021 tax return and pay any tax due.

People are still being encouraged by HMRC to file and pay on time if they can – which is the usual date of January 31, 2022.

The government department has revealed that more than half of the 12.2 million taxpayers who need to submit their tax return by January 31, 2022, have already done so. That’s almost 6.5 million people.

HMRC said it “recognises the pressure faced this year by Self-Assessment taxpayers and their agents.”

The Hollies Bookkeeping in Shropshire can certainly attest to this.

Julie Williams, Director at The Hollies Bookkeeping, based in Pontesbury, said: We have been very organised in our approach to get everything together and filed on time for our current clients.

“We even established our own late filing fee to prevent an influx of last-minute paperwork that we potentially could not get in on time.

“But this extra month, effectively takes the pressure off everyone a tiny bit and means that if anyone out there is still really struggling and needs a hand – we should be able to help.

"But remember, it takes time to set us up as an agent on your account and gain the right access and codes, time is needed to check and infill any holes in your bookkeeping and accounts and there is a time delay between filing your return and payment being taken.

“People need to bear in mind that COVID-19 and its effects on every industry is affecting the capacity of both agents and taxpayers to meet the January 31 deadline.

"When you factor in staff shortages, people needing to self-isolate and even things like difficulties facing Royal Mail with longer post-delivery times, it’s a good job the goalposts have been slightly moved.

“The penalty waivers give taxpayers who need it more time to complete and file their return online and pay the tax due without worrying about receiving a penalty.

"It’s important to remember that interest will be payable from February 1, 2022, as usual, so it is still better to pay on time if possible.”

The deadline to file and pay remains January 31, 2022. The penalty waivers have a few caveats attached and will mean that:

If you can’t file by the January deadline, you won’t receive a late filing penalty if you file online by February 28.

If you can’t pay your Self-Assessment tax by the January 31 deadline, you won’t receive a late payment penalty IF you pay your tax in full, or set up a Time to Pay arrangement, by April 1, 2022.

If you want to talk to The Hollies Bookkeeping further about what the changes mean or need any help filing your Self-Assessment, please call us 01743 790086 or email [email protected]