Tax Return Filing Deadline Extension Explained

HMRC has announced that the tax return filing deadline has been extended for 2022. Find more about this extension, how penalties are waived and interest will be charged.

Friendly Disclaimer: Whilst I am an accountant, I’m not your accountant. The information in this article is legally correct but it is for guidance and information purposes only. Everyone’s situation is different and unique so you’ll need to use your own best judgement when applying the advice that I give to your situation. If you are unsure or have a question be sure to contact a qualified professional because mistakes can result in penalties.

What is the Self Assessment Filing Deadline Extension?

As COVID continues to disrupt work in the UK, HMRC has announced it will waive late filing penalties for those who file their tax returns by 28 February 2022. In effect, this gives a filing extension of one month. In addition, late payment penalties for those who pay their tax or set up a payment plan by 1 April 2022.

HMRC hopes this will give accountants and self-employed individuals more time to get their tax returns filed if they have COVID or are forced to isolate.

Late payment interest will be applied to any tax payable from 1 February 2022, as normal. This is to try and encourage people to file their tax returns and pay what they owe by 31 January.

HMRC have also advised self-employed individuals to get their tax returns in by 31 January 2022 to ensure claims for government benefits that require the numbers from their returns remain unaffected.

Self-employed individuals who are struggling to pay their tax bills are also reminded to consider paying voluntary Class 2 national insurance to protect their ability to claim state benefits.

Related:

Taxes are changing! From April 2024 sole traders will need to report their earnings and pay tax on a quarterly basis. This is known as Making Tax Digital, which you can read more about in this guide to help you get prepared.

About Anita Forrest

Anita Forrest is a Chartered Accountant, spreadsheet geek, money nerd and creator of www.goselfemployed.co - a website full of templates, guides and resources for UK sole traders. No faff. No confusion. Just simple straightforward advice on business registration, taxes and bookkeeping.