The 2021/22 self-assessment tax return deadline was January 31st, 2023 for online filings and October 31st, 2022 for paper tax returns. In rare circumstances, the HM Revenue and Customs (HMRC) may grant you a different deadline, but in general, extensions are not possible. Any outstanding tax should have been paid by January 31st, 2023, or else interest will be charged on late payments.
If you fail to complete a tax return by the deadline and were required to do so by HMRC, you will be fined, regardless of how late you are or how small your tax liability is. Even if you are due a refund, a penalty would still apply. The penalties for filing a self-assessment tax return late are as follows:
- 1 day late: automatic fixed penalty of £100
- 3 months late: £10 per day up to a maximum of £900
- 6 months late: £300 or 5% of the tax due, whichever is higher
- 12 months late: £300 or 5% of the tax due, whichever is higher, with a possible 100% tax due in serious cases
Penalties for late payment of tax are:
- 30 days late: 5% of the tax due (not charged if paid by April 1st due to the pandemic)
- 6 months late: 5% of the outstanding tax due
- 12 months late: 5% of the outstanding tax due
It is important to note that interest, at a rate of 2.75%, will also be charged on top of penalties and any outstanding tax.
If your tax return is overdue, the first step is to determine if the return is necessary or if there is a legitimate reason for the delay. If you believe you are not required to file a return, you can call HMRC and request its withdrawal.
If approved, any penalties will be cancelled. If you have a good reason for the delay, such as an unexpected illness or hospital stay, you may be able to appeal the penalty. However, common excuses such as difficulty with the HMRC online system or a mistake on the return are usually not accepted.
If the return cannot be withdrawn and you don’t have a good excuse, it’s best to file the return as soon as possible to prevent penalties from increasing. If you make a mistake on your return, you have until January 31st, 2024 to amend it for the 2021/22 self-assessment tax return.
Please do not hesitate to contact Southside Accountants in Wimbledon for support.
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