Self-assessment taxpayers have more time to file their 2020/21 tax returns, following a decision to extend the filing deadline by one month.

No sooner had we returned to work after the Christmas holiday, ready to get back to business, and HMRC released a surprise announcement.

“COVID-19 is affecting the capacity of some agents and taxpayers to meet their obligations in time for the deadline,” it said.

The tax authority is still encouraging taxpayers to file and pay on time, if you can, on or before the 31 January 2022 deadline.

At Stapletons, we are unlikely to take on any more self-assessment clients this late in the day with less than a month until the deadline.

We had filed those tax returns a while ago and were preparing to focus on helping directors with their company tax returns.

But, we are in a position to advise self-assessment taxpayers who have left it late and inform them on where they stand now.

Late-filing deadline extension

If you’re struggling to file your 2020/21 tax return via self-assessment on or before midnight on 31 January 2022, help is at hand.

You now have until midnight on 28 February 2022 to file your tax return via self-assessment without receiving an instant £100 penalty.

However, if you miss the January deadline, your outstanding liabilities will start to accrue interest at 2.75% with effect from 1 February 2022.

The late-filing penalties (daily penalties from three, six and 12 months) will operate as usual from 1 March 2022.

Late-payment deadline extension

Like the late-filing extension, there is relief for late payment of your liabilities if you’re unable to pay before midnight on 31 January 2022.

Instead, you can spread repayments of tax bills worth up to £30,000 over the next 12 months by setting up a time-to-pay arrangement.

You must either set this up with HMRC, or pay your tax bill in full, before midnight on 1 April 2022 to avoid receiving a late-payment penalty worth 5% of your outstanding liability.

As well as setting up a time-to-pay arrangement before 1 April 2022, you must still file your 2020/21 tax return before midnight on 28 February 2022.

Don’t forget the SEISS

If you received any of the three grants available via the self-employed income support scheme (SEISS) in 2020/21, now’s the time to report them.

Even if you received one SEISS grant in 2020/21, it will count towards your taxable income and needs to be reported by 28 February 2022.

This should be in addition to any income or expenses arising from the 2020/21 tax year. We went into depth on this last September.

How we can help

Our personal tax planning service can handle every aspect of self-assessment on your behalf.

We adopt a collaborative approach through cloud accounting technology, which enables us to file returns well before any deadlines.

Email us at or call 01363 773191 to find out more.

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