Self-assessment taxpayers have been given ‘extra time’ to finish their tax returns, according to HMRC.
HM Revenue and Customs (HMRC) has confirmed that Self Assessment taxpayers will be given “extra time” to complete their tax returns without fear of penalty.
The tax authority announced earlier this week that for one month, late filing and late payment penalties for Self Assessment taxpayers will be waived.
This will give Britons more time to finish and submit their tax returns for the years 2020-21, as well as pay any outstanding taxes.
Those who fail to meet important tax deadlines on time are usually subjected to financial penalties.
HMRC, on the other hand, has chosen to waive these penalties in order to help those who are having difficulty completing their Self Assessment tax returns.
While the deadline for filing and paying any tax for Self Assessment taxpayers remains January 31, those who are unable to meet this deadline will not be penalized.
To avoid being charged at all, they must file any remaining tax returns by February 28.
In addition, those who are unable to pay their Self Assessment tax by the end of the month will not be charged a late payment penalty if they pay their tax in full or set up a Time to Pay arrangement by April 1, 2022.
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HMRC did point out that interest will be due on February 1st, and that all Self Assessment taxpayers should file their returns as soon as possible.
Taxpayers will be required to publicly declare any grants or payments received from pandemic-era financial assistance schemes as part of their Self Assessment tax form.
The Self-Employment Income Support Scheme (SEISS), Coronavirus Job Retention Scheme (CJRS), self-isolation payments, local authority grants, and support provided through the Eat Out to Help Out scheme are all examples of this.
According to HMRC, however, the £500 single payment for working households receiving tax credits is not required to be reported.
The Financial Secretary to the Treasury, Lucy Frazer, explained why the latest Covid variant caused the deadline to be pushed back.
“We recognize that Omicron is putting people under pressure, so we’re giving millions of people more breathing room to manage their tax affairs,” Ms Frazer said.
“Waiving late filing and payment penalties will help to alleviate financial burdens and safeguard livelihoods.”
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