Four million taxpayers yet to submit Self Assessment and pay tax, HMRC reveals

Four million taxpayers have yet to submit their tax return and pay any tax owed, HM Revenue & Customs (HMRC) has revealed.

The notice comes ahead of the 31 January Self Assessment deadline.

You must send a tax return if, between 06 April 2020 and 05 April 2021, you were employed as a sole trader and earned more than £1,000, a partner in a business relationship, or if you have any other untaxed income, such as certain Covid-19 grant or support payments, money from renting out a property, tips and commission, income from savings, investments and dividends, or foreign income.

The latest statistics suggest that more than 12.2 million taxpayers are required to complete a tax return for the 2020/21 tax year.

However, HMRC announced earlier this month that late submission and late payment penalties would be waived for one month, meaning taxpayers will not receive an automatic £100 penalty fine if they file by 28 February 2022.

Late payment interest will continue to accrue from 01 February, however, incentivising taxpayers to submit on time.

Commenting on the deadline, Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We know some customers may struggle to meet the Self Assessment deadline on 31 January which is why we have waived penalties for one month, giving them extra time to meet their obligations.”

Small businesses worried about paying their tax bill in full, meanwhile, can choose to set up an affordable payment plan.

You can make a Time to Pay arrangement without directly speaking to HMRC if you have filed your latest tax return, owe less than £30,000, are within 60 days of the payment deadline, and plan to pay your debt off within the next 12 months or less.

For help and advice with related matters, please get in touch with our team today.

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