As a part of their ongoing COVID-19 support, HMRC says it will be giving taxpayers an extra month to submit their 2020/21 Self-Assessment tax returns, and a payment deadline extension for those who still owe tax.

But what does this mean for landlords?

You may be one of the well organised landlords who has already submitted their self-assessment tax return for 20/21, but, given all the disruption we’ve had over the past couple of years, many haven’t.

Usually at this time of the year, those who haven’t submitted are rushing to get their tax information together, ready to submit by the 31st January.

HMRC’s announcement gives you a breathing space by extending the deadline to the 28th February 2022.

Please note that this is only for digital submissions. If you file via a paper self-assessment, then the deadline was  31st October last year, and so a late filing penalty will still be charged if they do not have a reasonable excuse for filing their paper return late.

If you are confused, or worried about filing your self-assessment tax return, a simplified tool, like APARI’s Simple Self-Assessment could be the perfect solution for you – calculate and submit your 20/21 self-assessment for just £49 here!

When do I have to pay my 20/21 Self-Assessment liability?

Along with extending the submission deadline, HMRC have also said that they will not be issuing late payment penalties as long as you pay the tax due in full or set up a payment plan by 1‌‌ ‌April 2022.

Don’t let this information prevent you from submitting though – there are still some things to consider.

Even though you will not be issued with a late payment penalty, other self-assessment related obligations will not be affected, meaning that:

  • Interest of 2.75% will still be charged on any outstanding liability from 1st February 2022.
  • For any returns filed after 28‌‌ ‌February, the usual late filing penalties (daily penalties from 3 months, 6 and 12 month penalties) will be charged.
  • A 5% late payment penalty will be charged on any tax outstanding (without a payment plan being in place), from midnight on 1‌‌ ‌April 2022. Additional late payment penalties will be charged as usual at 6 months (August 2022) and 12 months (February 2023).

What is a payment plan?

A payment plan, also known as a ‘time to pay agreement’ is available to taxpayers with a self-assessment bill of up to £30,000 who wish to spread out their payments in monthly instalments for up to 12 months.

If you are struggling to pay your self-assessment bill, or need a bit more time to pay, then this agreement is ideal for you – HMRC may take into account your previous history with paying self-assessment, so it’s worth setting up a plan as soon as possible if it is something you will need – interest will still be charged on the period it takes to pay, but no late filing penalties will be issued.

You can set up a payment plan on your online HMRC account.

So the best thing to avoid any extra charges, or problems, is to submit your return as soon as possible before the 31st January 2022 – but this new announcement from HMRC does provide a nice buffer for taxpayers who need it! Keep up to date on all things tax, by joining the APARI community today.


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