Just one week remaining to submit Self Assessment tax return to avoid late payment penalties

Self-employed business owners have just under one week left to complete their Self Assessment tax return to avoid late payment penalties.

The automatic £100 penalty was waived for one month to give sole traders and freelancers more time to meet their obligations.

It means taxpayers have until 28 February to submit their tax return for the 2020 to 2021 tax year to avoid fines.

According to HM Revenue & Customs (HMRC), more than 2.3 million taxpayers missed the 31 January Self Assessment deadline this year.

Commenting on the figures, Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We’re waiving penalties this year, to give those who missed the deadline an extra month.”

Please note, late payment interest will continue to accrue from 1 February 2022, incentivising taxpayers to submit their tax return and pay their tax as soon as possible.

If you will struggle to pay your tax bill in full, you can use HMRC’s self-serve Time to Pay facility to spread the cost of your tax into manageable monthly instalments.

You can use the facility if you have submitted your tax return, owe less than £30,000, and plan to pay your tax bill within 12 months.

For help and advice with related matters, please get in touch with our team today.

Posted in Blog.