Back in early January HMRC acknowledged the additional pressure COVID-19 is placing on taxpayers and their agents and announced a waiver that will give taxpayers more time to complete and file their tax return online before a penalty is issued.
HMRC announced that:
- anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty providing they file online by 28 February
- anyone who cannot pay the tax they owe by 31 January deadline will not receive a late payment penalty providing they pay their tax in full, or set up a Time to Pay arrangement, by 1 April.
Despite the filing extension, HMRC reminded taxpayers that the tax they owe is still due by 31 January - even if they have not yet filed their return. Interest will be charged from 1 February on any outstanding liabilities. It should be noted that late payment interest rates have recently been increased by HMRC.
Help with payment problems
Taxpayers that are struggling to pay the tax they owe can set up a payment plan with HMRC using the Time to Pay service on the government website. Customers with bills over £30,000, or who need longer than 12 months to pay their bill, should call HMRC on 0300 200 3822.
Taxpayers can contact HMRC via webchat, Twitter, or the self-assessment phone helpline (0300 200 3310). They can also find the information they need via the free HMRC app or their personal tax account.
Bulk appeals for late returns
For any tax returns that cannot be filed on time due to a reasonable excuse of Covid-19-related circumstances, the bulk appeals facility will be available for appeals made between 9 March and 6 May 2022. These appeals must be recorded using the template on GOV.UK and sent to:
Bulk Agent Appeals, HM Revenue and Customs, BX9 1ZH.
The following must be considered before making any bulk appeals using this facility:
- The template must only be used for 25 or fewer clients. If you need to submit an appeal on behalf of more than 25 clients, you should complete a second template.
- Each envelope you return using the above address should contain no more than one template of 25 or fewer clients. If you complete multiple templates, these should be sent in separate envelopes (maximum one template per envelope).
- All fields on the template should be completed – without this, HMRC won’t process the appeal for that client.
- Appeals for a High Net Worth Unit case should be submitted through the normal route and should not be included within this template.
- This template must only be used where the return was not filed by 28 February 2022 due to Covid-19. If the penalty is subject to appeal on other grounds, please use existing channels using either the SA370 or filed online.
Further resources
Covid-related grants to include on tax returns
HMRC information and inspection powers
Self-assessment tax returns for landlords
Tax guides to assist your clients
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