By the time this goes to press, January will be over, as will the usual rush to complete tax returns… or is it? Early January HMRC announced relaxations to the penalty regime regarding submission of 2021 tax returns and payments of tax, so if you are yet to complete yours, you have a stay of execution.

Usually the initial penalty for non-submission of tax returns to 5th April by the following 31st January is £100, this has however been extended to 28th February, due to Covid. 31st January is also the date any residual tax for the previous year is due as well as the first payment on account for the current year.

This too has been relaxed, to a degree. Usually penalties apply to late payment, but, again, to give people more time to get things in order, HMRC have allowed taxpayers until 1st April 2022 to either pay their amounts of tax that would usually be due in January, or arrange a payment plan. It is important to note however, that whilst penalties have been relaxed, interest will still be charged from the due date of 31st January.

The above applies to personal tax returns only, not Corporation Tax returns. At the time of writing there has not been any announcement regarding Corporation Tax returns or payment, which in my view does seem, yet again, a little imbalanced.  By way of reminder, Corporation Tax returns need to be submitted within 12 months of the company year end, however, any Corporation Tax due, paid within 9 months and 1 day of the year end, which I always thought was odd, but who am I to question the powers at HMRC.  You can however apply for an extension of 3 months for Companies House filings.