Point of no return looms over HMRC tax deadline
THE extended self-assessment tax return deadline expires next Monday, so if you need to file a return, the time to act is now.
HM Revenue & Customs waived late filing and late payment penalties for one month due to pandemic disruption, but these will apply if you have to file a tax return but fail to do so before midnight on Monday, February 28.
The automatic £100 penalty for late filings applies after that.
Taxpayers also have to pay all the tax they owe by midnight on April 1, or face a 5 per cent late payment penalty.
Further late payment penalties for outstanding tax returns will apply after six and 12 months, in August 2022 and February 2023, said Trusha Shah, tax manager at accountancy firm HW Fisher.
If you did not complete a selfassessment tax return last year you probably do not need to do so now, unless your circumstances have changed.
Those who have taken on a side hustle during the pandemic may have to complete a return. Shah warned: “Every UK resident with untaxed income over £1,000 from selfemployed earnings or rental income has an obligation to file a return.”
She said organisation is key. “All too often taxpayers leave it too late and make simple mistakes in the rush to complete on time.”
HMRC has already started charging interest at 2.75 per cent on tax payments due from February 1, 2022.
Shah said self-employed businesses that received financial support such as Covid grants need to report them on their tax return. “The deadline is almost upon us and there is a weekend in the way, so aim to get it done by Friday at the latest.”