Don’t forget to pay your personal tax turn by the end of January.
If you are self-employed or you are director of a limited company, you need to register with HMRC for self assessment tax returns in most cases. You need to pay your personal tax by 31st January 2022 to avoid any interest charges for your 2020-21 tax year.
HMRC announced on 6th January 2022 that they are waiving late filing and late payment penalties for Self Assessment taxpayers for one month – giving them extra time, if they need it, to complete their 2020 to 2021 tax return and pay any tax due.
HMRC is encouraging taxpayers to file and pay on time if they can. Of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.
HMRC recognises the pressure faced this year by Self Assessment taxpayers and their agents. COVID-19 is affecting the capacity of some agents and taxpayers to meet their obligations in time for the 31 January deadline. The penalty waivers give taxpayers who need it more time to complete and file their return online and pay the tax due without worrying about receiving a penalty.
The deadline to file and pay remains 31 January 2022. The penalty waivers will mean that:
A similar extension was granted by HMRC in 2021.
Interest will be payable from 1st February, as usual, so it is still better to pay on time if possible.
If your VAT quarters end in December, March, June and September, your latest VAT return is for the period 1st October 2021 to 31st December 2021. This return must be filed by 7th February 2022.
Your accounts need to be brought up to date to 31st December before your VAT return can be filed. If Alterledger is your accountant, we will already have asked for your December bank statements to confirm the balances in Xero. If you haven’t already sent your December bank statement, please do this as soon as possible!
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