HMRC waives penalties for one month for late submission of 2021 Tax Returns and payment of corresponding tax liability

On 6 January 2022, HM Revenue & Customs (HMRC) announced that they would be waiving penalties for one month in respect of the late filing of 2021 Self-Assessment Tax Returns and the payment of any corresponding tax liability.

This is in recognition of the disruption that the spread of the Omicron variant could potentially have on the ability of taxpayers and their agents to meet the statutory deadlines, although HMRC are still encouraging taxpayers to file and pay on time where possible.

Consequently, no penalty will be charged provided a taxpayer has filed their 2021 Self-Assessment Tax Return online by 28 February 2022 and has paid their tax liability by 1 April 2022 (or entered into a time to pay arrangement with HMRC by this date).

It should be noted that interest on the late payment of tax will still accrue from 1 February 2022, currently at a rate of 2.75% per annum, and the late filing of the tax return will extend the window in which an enquiry can be opened into the Tax Return.