Self-Assessment Penalty Waivers
January 12, 2022
by  Rubi Shan

Self-Assessment Penalty Waivers

If you have not heard yet, HMRC have announced that they will not charge:

  1. Late filing PENALTIES for those who file online by 28 February 2022
  2. Late payment PENALTIES for those who pay the tax due in full or set up a payment plan by 1 April 2022


HMRC understand that this is a difficult time and therefore have given their customers additional time if they require it and will waiver any penalties similarly to last year. However, if possible please do file and pay on time.

I cannot afford to pay my Self-Assessment in one go, what can I do?

There is an option called ‘Time to Pay’. Once you have filed your 2020-21 Self-Assessment return, you can set up an online payment plan to spread Self Assessment bills up to £30,000 over 12 monthly instalments. Go on the GOV.UK website to set it up.

Is there any interest?

Yes. The payment deadline for Self-Assessment is 31 Jan 2022 and interest will be charged from 1 February 2022 on any amounts outstanding. A 5% late payment penalty is charged on any unpaid tax that is still outstanding on 3 March 2022. However, this year Self-Assessment customers will not be charged the 5% payment penalty if their taxes are paid by 1 April 2022.

Is there any changes to the filing or payment deadline?

No. There no changes.

Interest will be charged on late payment. The interest is 2.75%

Returns filed after 28 February will result in other late filing penalties such as the daily penalties from 3 months, 6 and 12 months.

There will be a 5% late payment penalty if taxes are outstanding and a payment plan is not set up by midnight 1 April 2022. Further late payment penalties will be charged if tax remains outstanding.

There will not be a late filing penalty if you file your SA800s and SA900s online by end of February. However if you file SA800s and SA900s by paper, the deadline was 31 October 2021.

HMRC Helpline: 0300‌‌ ‌200‌‌ ‌3822.

If you need any more guidance, feel free to contact us.

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