{"id":8619,"date":"2022-02-17T10:30:00","date_gmt":"2022-02-17T10:30:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=8619"},"modified":"2026-01-29T09:29:18","modified_gmt":"2026-01-29T09:29:18","slug":"self-assessment-submit-tax-return-without-penalty","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/self-assessment-submit-tax-return-without-penalty\/","title":{"rendered":"Self Assessment: Can I pay my 2020\/21 tax return bill late?"},"content":{"rendered":"
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\n\t\t\t\t\t\tSelf Assessment: Can I pay my 2020\/21 tax return bill late?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tKeir Thomas-Bryant<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

HMRC has announced that, as a temporary measure for the 2020\/21 tax year, it will be possible to submit your Self Assessment tax return and some associated forms as late as midnight on 28 February 2022 without incurring a penalty.<\/p>\n\n\n\n

Additionally, those that use Self Assessment won\u2019t be charged an initial 5% late fee if \u2013 before 1 April 2022 \u2013 they either pay in full their taxes that are due, or contact HMRC to create a Time to Pay arrangement to pay the bill in instalments.<\/p>\n\n\n\n

These measures mirror those offered in January and February 2021.<\/p>\n\n\n\n

Back then, HMRC said the measures are because of the \u201cimmense pressure that many people are facing in these unprecedented times\u201d.<\/p>\n\n\n\n

Covid has caused significant disruption, and may result in people being late submitting their Self Assessment tax returns<\/a> and paying their tax, despite their best efforts.<\/p>\n\n\n\n

In this article, we cover what HMRC\u2019s announcements<\/a> mean for you and the steps you can take now.<\/p>\n\n\n\n

Here’s what we cover:<\/p>\n\n\n\n

What is the Self Assessment extension?<\/a><\/p>\n\n\n\n

Can I pay my 2020\/21 tax late?<\/a><\/p>\n\n\n\n

Why has HMRC made these decisions?<\/a><\/p>\n\n\n\n

Final thoughts<\/a><\/p>\n\n\n\n

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Download your free guide, How to find an accountant for Self Assessment support<\/a><\/div>\n<\/div>\n\n\n\n

What is the Self Assessment extension?<\/h2>\n\n\n\n

HMRC made it clear that those who could meet the 31 January 2022 online deadline to submit their 2020\/21 Self Assessment tax return<\/a> should have done so.<\/p>\n\n\n\n

If required, they should have also submitted the SA800 (Partnership Tax Return) and SA900 (Trust and Estate Tax Return) online by that date too if paper copies hadn’t been submitted to meet the 31 October 2021 postal deadline.<\/p>\n\n\n\n

Paper submissions of forms SA700 (Non-resident Company Income Tax Return) and SA970 (Tax Return for Trustees of Registered Pension Schemes) sent as part of the online Self Assessment process should have also arrived by 31 January 2022.<\/p>\n\n\n\n

Typically, if the 31 January deadline is missed by up to three months then you incur an automatic fine of \u00a3100.<\/p>\n\n\n\n

There are larger fines if your Self Assessment<\/a> tax return is submitted even later than this.<\/p>\n\n\n\n

Sometimes the fines are waived if you\u2019ve a good excuse for filing late, but that involves speaking to HMRC first and making your case.<\/p>\n\n\n\n

HMRC\u2019s announcement in January 2022 means that, for the 2020\/21 tax year\u2019s Self Assessment return<\/a>, it’s waiving the mandatory \u00a3100 fine \u2013 provided the return is submitted online by midnight on 28 February 2021.<\/p>\n\n\n\n

The SA800 and SA900 should also be submitted online by this date, while if you need to submit SA700 or SA970 forms by post then they should be received by HMRC by that date too.<\/p>\n\n\n\n

In other words, it isn\u2019t accurate to say HMRC had extended the deadline. It\u2019s just not penalising those who submit up to a calendar month late.<\/p>\n\n\n\n

As such, there is no need to apply to HMRC to make use of this measure, or seek permission first.<\/p>\n\n\n\n

You simply have to submit your 2020\/21 Self Assessment return and certain other required documentation by 28 February 2022 if you wish to avoid fines.<\/p>\n\n\n\n

Can I pay my 2020\/21 tax late?<\/h2>\n\n\n\n

All those registered for Self Assessment should have paid their tax by 31 January.<\/p>\n\n\n\n

If you don\u2019t then, in theory, an automatic 5% late-payment penalty is applied. Additionally, interest starts to accrue from 1 February onwards.<\/p>\n\n\n\n

However, HMRC has announced that the 5% penalty will not apply for the 2020\/21 tax year Self Assessment return tax bill, provided one of two things occurs before midnight on 1 April 2022:<\/p>\n\n\n\n

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  1. You pay your Self Assessment tax bill.<\/li>\n\n\n\n
  2. You set up a Time to Pay plan.<\/li>\n<\/ol>\n\n\n\n

    Notably, interest will still continue to accrue even though the penalty doesn\u2019t apply. However, at a rate of 2.75% on the amount you owe, this shouldn\u2019t be a significant burden if either of the two options are applied before 1 April 2022.<\/p>\n\n\n\n

    Time to Pay is an arrangement that can be reached with HMRC where you agree to pay your taxes late, by up to 12 instalments.<\/p>\n\n\n\n

    You don\u2019t necessarily have to speak to anybody at HMRC, and can set up a payment plan online<\/a>. But you do need to take action and it isn\u2019t automatically applied.<\/p>\n\n\n\n

    To use Time to Pay, you need to owe \u00a330,000 or less, and your tax returns must be up to date. You also can\u2019t have any existing payment plans or debts with HMRC.<\/p>\n\n\n\n

    Why has HMRC made these decisions?<\/h2>\n\n\n\n

    This move follows an identical offering from 2021.<\/p>\n\n\n\n

    HMRC monitors the coronavirus<\/a> disruption and although it says more than 6.5 million people have already used Self Assessment this year, it clearly believes there\u2019s a risk of late filing and payments this year too.<\/p>\n\n\n\n

    Final thoughts<\/h2>\n\n\n\n

    The advice from both HMRC and accountants is always to submit your Self Assessment well ahead of time, and ensure you pay your taxes on time.<\/p>\n\n\n\n

    Considering that most people using Self Assessment have all the information they need at the end of the tax year each April, waiting until 31 January the following year is considered to be taking an unnecessary risk.<\/p>\n\n\n\n

    However, in these extraordinary times, it\u2019s clear that normal patterns have been disrupted.<\/p>\n\n\n\n

    The announcement of the easing of the late penalty until 28 February 2022 was just what many people needed, and the removal of the 5% penalty will be welcome by others paying their bills a little later than they would like.<\/p>\n\n\n\n

    Editor’s note: This article was first published in January 2021 and has been updated for relevance.<\/em><\/p>\n\n\n\n

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    Manage your tax returns with our Self Assessment guide<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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    Is filing your Self Assessment tax return a struggle or is it the first time you’re doing it? Check out our step-by-step guide, which covers what you need to know.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tDownload your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t

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    Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tSubscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    HMRC’s offered the chance to file tax returns by 28 February 2022 without being penalised. Find out what this means for paying tax bills.<\/p>\n","protected":false},"author":280,"featured_media":7843,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[6,9],"tags":[191,135,206,27],"business_type":[4,115],"lilypad":[],"context":[],"industry":[],"persona":[67,73,74,75],"imagine_tag":[220,222,77,200,109],"coauthors":[369],"class_list":["post-8619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","category-strategy-legal-operations","tag-business-continuity","tag-business-finances","tag-need-to-know","tag-tax","business_type-small-business","business_type-accountants"],"sage_meta":{"region":"en-gb","author_name":"Keir Thomas-Bryant","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2020\/07\/GAP-PERSONNEL_2017_X3_BB_241017_0427.30988.jpg","imagine_tags":{"220":"Accountant accounting","222":"Accountant tax","77":"Accounting software","200":"Payroll","109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/8619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/280"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=8619"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/8619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/7843"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=8619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=8619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=8619"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=8619"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=8619"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=8619"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=8619"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=8619"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=8619"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=8619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}