HMRC Waives Fines

In light of the additional pressures some individuals and business are facing due to the impacts of COVID-19, HMRC has announced that they will be waiving late filing and late payment penalties on Self Assessment tax returns for one month.

Lucy Frazer, Financial Secretary to the Treasury commented:

“We recognise that Omicron is putting people under pressure, so we are giving millions of people more breathing space to manage their tax affairs. Waiving late filing and payment penalties will help ease financial burdens and protect livelihoods as we navigate the months ahead.”

In a usual tax year, the deadline to file and pay any tax due is 31^st January, however the introduction of these penalty waivers means:

• If you are unable to file your 2020/21 tax return by the 31^st January 2022 deadline, then you will not incur a late filing penalty provided you file online by 28^th February 2022.
• If you are unable to pay your taxes due on your Self Assessment tax return for 2020/21 by the 31^st January 2022 deadline, then you will not incur a late payment penalty as long as you pay your tax in full, or set up a Time to Pay arrangement, by 1^st April 2022.

Despite the penalties being waived, interest will accrue on unpaid tax from 1^st February 2022 as normal, so it is still better to pay on time if possible.