HMRC has recently announced that due to the impact of the Omicron variant they will be waiving penalties for those tax returns not filed by 31st January, as long as they are filed by 28th February.
Great! A filing extension to relieve the pressure of filing your returns on time! – Actually, no not quite. There is a big difference between waiving penalties, and a filing extension. Let’s be clear, HMRC have not changed the filing the deadline from 31st Jan to 28th Feb. They are simply saying that no penalties will be charged provided the payment and the return are both lodged before 28th Feb.
What’s the difference? – If you file your return any time between 1st February and 28th February, it will still be considered late by HMRC. If you don’t make your payment before 1st February, HMRC will still charge late payment interest. It is only the penalties that have been waived.
Is there any impact? Other than late payment interest being charged, there are no impacts on this that have been made clear. However, there are some potential areas of concern. For example, if you technically file late, will you be flagged by HMRC as late and be more prone to an investigation? If the chancellor has to introduce measures such as self employment grants again, will they only payout on those tax returns filed on time? No impacts issues have been highlighed by HMRC, but that doesn’t mean there won’t be any.
What’s the lesson here? Quite simply; whilst penalties are not being charged, you should still make every effort to file your tax return and make your tax payment on time. Failure to do so could have unknown consequences down the line. Taking advantage of the waiver from HMRC should be a last resort only.
Need help filing your tax return? Why not get in touch via our contact us page.
