The tax agents have been asked by HMRC to make their clients recall that tax has to be paid even for COVID–19 support grants or payments and declaration should be made on their company tax returns. These support grants or payments should be considered and noted as income while evaluating the taxable profits. Also, it should be reported separately on their Company Tax Return.
The end date for customers or agents to file their company tax returns (CT600) is 1 year, that is, 12 months after the completion of the accounting period. The taxable profits and the end of the accounting period decide the end date on which the corporation tax has to be paid.
31 January 2022 is the last date for self-assessment customers for the completion of 2020-21 tax returns or any tax that has to be paid.
The end date to file and pay is still 31 January 2022. The penalty waivers will mean that:
- Even if a taxpayer fails to file their return by the end date i.e. 31st January, he or she will not receive a late filing penalty but this would be applicable only if he or she would file the tax return online by 28 February; and
- Even if a taxpayer fails to file their return by the end date i.e. 31st January, he or she will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April.
However, from 1 February onwards, the interest would be due.