Penalties waived as long as 2020-21 self-assessment returns are filed by 28 February

HMRC will waive late filing and late payment penalties for self-assessment taxpayers as long as they file their 2020-21 return and pay any tax due by 28 February. This in recognition of the pressure experienced this year by taxpayers and their agents.

Under the waiver anyone who cannot pay their self-assessment tax by the 31 January deadline will not receive a late payment penalty if they pay their tax in full or set up a time-to-pay arrangement by 1 April.

Importantly the deadline to file and pay remains 31 January 2022 so other claims and elections usually made through the tax return will need to be submitted by that date. In addition HMRC confirms that interest will be payable from 1 February as usual so it is still better to pay on time if possible.

HMRC’s time-to-pay service gives individuals or...