Just 12 days to Self-Assessment deadline

The Low Incomes Tax Reform Group (LITRG) is reminding taxpayers that the deadline for submitting most online 2021/22 Self-Assessment tax returns is less than two weeks away, on 31 January 2023¹. Unlike for the previous two years², LITRG is not expecting HMRC to allow taxpayers more time to file their 2021/22 return and pay the tax before they receive penalties.

HMRC announced at the beginning of this month that nearly half of those taxpayers who were expected to file a return for 2021/22 had yet to file³. Those who have outstanding returns will likely face an automatic £100 penalty if their return is not submitted online by midnight at the end of Tuesday, 31 January 2023. Tax unpaid by the same date will accrue late payment interest (currently at 6% per annum). Penalties for late payment will potentially apply if amounts are still not paid by midnight at the end of 2 March 2023⁴.

Tom Henderson, LITRG Technical Officer, said: 

“Due to the coronavirus pandemic, HMRC allowed people to file their returns up until 28 February without incurring a penalty for the last two years. We do not expect HMRC to do that for 2021/22 returns, so we are reminding people to take action before the 31 January deadline.

“There is still time to avoid a fine if you are one of the millions of people who still need to complete and submit a tax return for 2021/22. Do not leave it until the last minute, as you may discover that you do not have all the necessary information, or you may need to get help. Filing your tax return sooner rather than later will also mean that you either have more time to prepare for a tax bill, or you may receive a refund quicker.

“LITRG publishes a wealth of information to help taxpayers in filing their tax return, including guidance on what to do if you are unable to obtain the necessary figures⁵.

“Unfortunately, the Self-Assessment system contains a few traps. For example, if you need to file a tax return for 2021/22 but you have not yet registered to do so, then the 31 January payment deadline still applies, and interest will accrue on late payments⁶. Conversely, if you registered to file a return but you no longer think you need to do so, late filing penalties will still apply if you do not file a return by the deadline⁷. In either case, it is best to take any necessary action sooner rather than later.”