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HM Revenue & Customs UK has lifted late payment and pay penalties for self-helpers over the next month, helping those struggling with the scourge of the epidemic.
The idea comes as HMRC revealed that of the 12.2m taxpayers who are due to file their tax return by January 31, 6.5m are the only ones who have already done so.
“We are aware of the challenges that people and businesses are facing this year, as a result of the Covid-19 crisis,” said Angela MacDonald, HMRC deputy vice president.
“Our idea of lifting a one-month sentence for self-assessment taxpayers will give them more time to meet their obligations without having to worry about being punished.”
Although the deadline for submission and payment is still January 31, late penalties will not apply if you refund online submissions on February 28. Late payment penalties will not apply if the tax is paid by April 1st.
The same deadline also applies to the implementation of the Time to Pay system, which allows taxpayers to post £ 30,000 or less than 12 per month.
However, the deadline of January 31 applies for all other reasons, says Nimesh Shah, chief of Blick Rothenberg’s tax and technology company.
“HMRC will still require taxes and the delayed payments will attract a daily interest rate of 2.75 per cent and 5 per cent if not paid by April 1 (which is a month longer than that),” he warned.
He added that the lack of a deadline could lead to other problems, such as the window size HMRC should ask for, and that comments and other decisions should be submitted by January 31.
This is the second time that the government has done this on a whim last year at the request of experts and tax professionals, who said they would struggle to meet deadlines due to the Covid crisis.
In a normal year, failure to pay on time can result in a fine of £ 100, plus additional expenses such as a delay of three months or more.
Population 1.8m he misses the deadline of January 31 last year after HMRC announced the temporary removal of fines, almost double the 2020 amount.
The recurrence was unexpected because the disruption was less than in 2021, Shah said. “HMRC could be very concerned about the amount of retrieval that has not been retained, as well as the pressure to extend the time when the deadline is approaching.”
The move was welcomed by the Institute of Chartered Accountants in England and Wales. “We have been urging the HMRC to give more self-assessed taxpayers and their helpers, which is why we are very pleased with this idea which can help people and taxpayers who are experiencing the Covid-19 crisis,” said Frank Haskew, head of policy. of tax to ICAEW.
“This will be a great relief to those facing tax debt, as well as other domestic debt in January,” added the Dawn Register, BDO’s chief tax officer, the fifth largest UK accountant.
In all cases, taxpayers have to appeal to the HMRC on the grounds of “reasonable excuse” for their delay, says the Register, a method that could be interpreted.
HMRC said more than 45,000 taxpayers were sent on New Year’s Day and New Year’s Day.
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