The deadline to submit your tax return for the 21/22 tax year was the 31 January 2023 with a record number of Self Assessments being submitted on time.
A total of 11,733,465 were filed by the 31 January working out at a healthy 97.3% of the expected number of returns.
HMRC have confirmed that an estimated 600,000 people have missed the deadline and in most cases will be charged an automatic £100 fixed penalty for being late.
HMRC Time to Pay is there to help you
If you haven’t submitted your tax return because you owe HMRC tax and are unable to pay the full amount due you should contact HMRC for support.
HMRC are there to help where they can and the Time to Pay scheme is available allowing tax to be paid back over an agreed period of time instead of in one lump sum.
Setting up a Time to Pay arrangement can stop any late penalties getting worse and repays what you owe in a more manageable way.
Late filing penalties
The Self Assessment late filing penalties are automatically charged and increase periodically if your tax return is not submitted.
The Self Assessment late penalties are:
- 1 day late = £100 fixed penalty which is applied even if you don’t owe HMRC tax
- After 3 months late = additional daily penalty of £10 per day up to a maximum of £900
- After 6 months late = additional 5% of any tax due or £300 whichever is higher
- After 12 months late = additional 5% of any tax due or £300 whichever is higher
Late payment penalties
Penalties are imposed for not paying the tax you owe for the 21/22 tax year by the 31 January 2023.
The penalties for paying late are in addition to late filing penalties and are a set at 5% of the tax unpaid at 30 days, 6 months and 12 months.
For those who are not in a position to pay HMRC all of the tax owed immediately a Time to Pay arrangement should be considered to spread the payments over time and stop any penalties increasing.
Appealing a 2021/2022 late filing penalty
HMRC gives you the opportunity to appeal a Self Assessment late filing and late payment penalty but only after they have received your tax return.
An appeal can be accepted if you have an excuse that HMRC deems to be reasonable in which case your penalty will be cancelled.
You can submit an appeal against a late filing penalty online or by post via .GOV.
Tell HMRC if you don’t need to submit your 2021/2022 return
The Self Assessment system sometimes needs to be updated to reflect the fact that you no longer need to complete a 2021/2022 self assessment tax return.
If your circumstances have changed meaning that you don’t fit SA criteria you should let HMRC know so they can update their systems meaning your tax return is cancelled along with any penalties.
You find out more about HMRC and how to contact them in our guide to Her Majestys Revenue and Customs (HMRC).
