Were you one of the 2.3m individuals who missed the self-assessment tax return deadline of 31st January? Out of 12.2m taxpayers due to submit a self-assessment tax return, almost 30% left it either until the last minute or missed the deadline entirely.

The good news is that if you missed the self-assessment deadline, HMRC have extended the deadline after which they will enforce penalties to 28th February 2022. The bad news is that although HMRC won’t be enforcing penalties before 1st March 2022, they will still be charging interest on any tax for returns submitted after the 31st January deadline. Interest is being charged initially at 2.75% on the tax you owe and will increase over time. So if you have missed the deadline, it’s still in your best interests to submit your tax return asap and not wait until the end of the month.

What if I miss the second self assessment deadline?

If you miss the 28th February 2022 deadline, you’ll be charged the following:

• Initial £100 penalty for missing the deadline
• Additional £10 daily fine (for up to 90 days)
• Six months late – a further £300 fine or 5% of the tax owed, whichever is higher
• 12 months late – an additional £300, or 5% of the tax owed, whichever is higher

Spread your tax bill with time-to-pay arrangements

If you missed paying your tax bill by 31st January, don’t panic as you have until 1 April 2022 to either pay your bill fully or set up a time-to-pay arrangement.

Time-to-pay arrangements have been set up by HMRC to spread the cost of repaying tax bills of up to £30,000, usually over a period of up to 12 months.

If you need help with your self-assessment, get in touch for a FREE consultation.