Two million people missed self-assessment deadline
More than two million people missed a self-assessment tax return deadline on 31 January 2022, according to HMRC.
The tax authority said more than 10.2 million returns were filed ahead of the original deadline, leaving 2.3 million still to file.
Late-filers had until 28 February 2022 to file their 2020/21 tax returns online before being fined, due to pressures ensuing from the pandemic.
However, interest on outstanding tax bills is accruing at 3% and HMRC’s late-filing penalties regime kicks in as usual from 1 March 2022.
Late-paying taxpayers have until 1 April 2022 to pay their tax bills in full, or set up a time-to-pay arrangement.
These arrangements spread the cost of repaying tax bills of up to £30,000 into manageable monthly instalments, usually over a period of up to 12 months.
A 5% late-payment penalty will be charged if tax is not paid or a payment plan has not been set up by midnight on 1 April 2022.
Myrtle Lloyd, director-general for customer services at HMRC, said:
“I’d like to thank the millions of customers and agents who sent us their tax returns and paid in time for January’s deadline.
“Customers can set up a monthly payment plan online if they’re worried about paying their tax bill.”
More than 10.2m people filed their 2020/21 tax returns on time, down from 10.7m last year.
For the new tax year, we are keen to assist client in getting their Tax Returns filed as early as possible. Providing your information as early as possible means you will have more time to prepare for tax liabilities becoming due and will receive any tax repayments sooner. It also gives us the opportunity to consider any ways to reduce your future tax liability.
For more information on any aspect of self-assessment, please contact Martin Back on 023 8046 1232