1.5m Taxpayers have less than a Week to File their Returns
While 10.7m taxpayers have successfully filed their self assessment tax return for 2020/21, a further 1.5m need to file by 28 February 2022 to avoid a £100 late filing penalty. The usual date on which a penalty would have been due, 31 January 2022, was put back by four weeks to allow more time due to the pandemic.
Daily penalties of £10 per day will, in most cases, start to accrue from 1 May 2022 for returns that remain unfiled.
Time to pay arrangements need to be in place by 1 April 2022 to avoid a 5% late payment penalty. This is also the deadline for setting up a time to pay arrangement online; about 100,000 taxpayers have used this facility.
Interest is running now on any unpaid tax. An increased rate of 3% applies from 21 February 2022.