The January deadline has been and gone and if you’re one of the 2.3 million taxpayers who haven’t submitted their 2020/21 tax return as of yet – don’t panic.
Earlier on in the year, HMRC announced that they would be waiving late filing penalties for self-assessment tax returns filed by 28th February 2022, effectively giving the self-employed another month to file their returns.
What many haven’t realised is that the tax bill itself was still due for payment on 31st January 2022, so if you haven’t paid yet, interest charges have now started to accrue.
For those unable to pay their tax bill, there is the option to set up a payment plan which allows them to spread tax payments into more manageable monthly instalments.
What to do now:
- File your self-assessment tax return online by 28th February 2022, or get us to do it for you
- As of 1st February, interest will be applied to your outstanding tax balance
- You have until 1st April to pay your tax bill or set up a payment plan via the Time to Pay scheme
- Paying your estimated tax bill as soon as possible will minimise your interest charges. You can use this calculator to work out your estimated tax bill
- After that date late payment penalties will be applied by way of daily penalties from 3 months, 6 months and 12 months
If you are unsure whether you need to file a self-assessment tax return in the first place, or have questions about your particular situation, simply get in touch with our team on 01444 458252 or firstname.lastname@example.org.