HM Revenue and Customs (HMRC) has announced that over 10.2 million people filed their Self Assessment tax returns for the 2020-2021 tax year by the January 31 2022 deadline.
However, with well over 12 million expected to file a Self Assessment return this year, the announcement means that approximately 2.3 million people – or around 19 per cent of those expected to submit – did not file their returns by the deadline.
HMRC revealed that January 31 saw more than 630,000 Self Assessment customers file their tax returns, with the peak for the day reached between 16:00 – 16:59, when over 52,000 customers filed their returns. A further 20,947, meanwhile, left it until the last minute and filed between 23:00 – 23:59.
The latest announcement from HMRC comes after a turbulent year for the UK’s self-employed community, amid the impact of IR35, Brexit and COVID-19. In recognition of this, HMRC has waived late filing penalties and late payment penalties for Self Assessment customers.
This means that the 2.3 million yet to file will not face a late filing penalty providing they file their return by February 28. Meanwhile, those who haven’t paid their outstanding tax on time won’t be subject to a late payment penalty if they pay or set up a payment plan by April 1. However, as the January 31 deadline itself wasn’t moved, interest began accruing on unpaid tax from February 1 at a rate of 2.75 per cent.
HMRC Director General for Customer Services Myrtle Lloyd commented: “I’d like to thank the millions of customers and agents who sent us their tax return and paid in time for this week’s deadline.”
“We’re waiving penalties this year, to give those who missed the deadline an extra month. And customers can set up a monthly payment plan online if they’re worried about paying their tax bill. Search ‘Self Assessment’ on GOV.UK to find out more.”
