HMRC: Self Assessment taxpayers given more time to ease COVID-19 pressures

HM Revenue and Customs (HMRC) is waiving late filing and late payment penalties for Self Assessment taxpayers for one month – giving them extra time, if they need it, to complete their 2020/21 tax return and pay any tax due.

HMRC is encouraging taxpayers to file and pay on time if they can, as the department reveals that, of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.

HMRC recognises the pressure faced this year by Self Assessment taxpayers and their agents. COVID-19 is affecting the capacity of some agents and taxpayers to meet their obligations in time for the 31 January deadline. The penalty waivers give taxpayers who need it more time to complete and file their return online and pay the tax due without worrying about receiving a penalty.

The deadline to file and pay remains 31 January 2022. The penalty waivers will mean that:

·         anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February, and

·         anyone who cannot pay their Self Assessment tax by the 31 January deadline 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.

Interest will be payable from 1 February, as usual, so it is still better to pay on time if possible.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “We know the pressures individuals and businesses are again facing this year, due to the impacts of COVID-19.

“Our decision to waive penalties for one month for Self Assessment taxpayers will give them extra time to meet their obligations without worrying about receiving a penalty.”

Lucy Frazer, Financial Secretary to the Treasury, said: “We recognise that Omicron is putting people under pressure, so we are giving millions of people more breathing space to manage their tax affairs. 

“Waiving late filing and payment penalties will help ease financial burdens and protect livelihoods as we navigate the months ahead.” 

The existing Time to Pay service allows any individual or business who needs it the option to spread their tax payments over time. Self Assessment taxpayers with up to £30,000 of tax debt can do this online once they have filed their return.     

The 2020/21 tax return covers earnings and payments during the pandemic. Taxpayers will need to declare if they received any grants or payments from the COVID-19 support schemes up to 5 April 2021 on their Self Assessment, as these are taxable, including:

  • Self-Employment Income Support Scheme (SEISS)
  • Coronavirus Job Retention Scheme (CJRS)
  • Other COVID-19 grants and support payments such as self-isolation payments, local authority grants and those for the Eat Out to Help Out scheme

The £500 one-off payment for working households receiving tax credits should not be reported in Self Assessment.

HMRC urges everyone to be alert if they are contacted out of the blue by someone asking for money or personal information.

Taxpayers should always type in the full online address www.gov.uk/hmrc to get the correct link for filing their Self Assessment return online securely and free of charge. HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department.

If in doubt, HMRC advises not to reply directly to anything suspicious, but to contact them straight away and to search GOV.UK for ‘HMRC scams’.

Afghanistan evacuation deadline extension: Joe says NO

US President Joe Biden says troops are on track to meet 31 August deadline

A joint statement on Afghanistan was released by the G7 Leaders last night:

Today, 24 August 2021, under the Presidency of the United Kingdom, we the Leaders of the Group of Seven met virtually to discuss the situation in Afghanistan. We were joined by the Secretaries General of the United Nations (UN) and NATO. We reaffirm our steadfast commitment to the people of Afghanistan, and support the UN Security Council statement of 16 August.

We express our grave concern about the situation in Afghanistan and call for calm and restraint to ensure the safety and security of vulnerable Afghan and international citizens, and the prevention of a humanitarian crisis.

We call for adherence to obligations under international human rights law, including the rights of women, girls, and minority groups, and that international humanitarian law is upheld in all circumstances. We honour the significant sacrifices made by the Afghan people, people of our own countries, and countless others, who have worked toward a more peaceful, just and secure future for Afghanistan.

The Afghan people deserve to live in dignity, peace and security, reflecting the last two decades of their political, economic and social achievements, in particular for women and girls. Afghanistan must never again become a safe haven for terrorism, nor a source of terrorist attacks on others.

Working with partners, in particular NATO allies, we will continue to fight terrorism with resolve and solidarity, wherever it is found. Any future Afghan government must adhere to Afghanistan’s international obligations and commitment to protect against terrorism; safeguard the human rights of all Afghans, particularly women, children, and ethnic and religious minorities; uphold the rule of law; allow unhindered and unconditional humanitarian access; and counter human and drug trafficking effectively.

We call on all parties in Afghanistan to work in good faith to establish an inclusive and representative government, including with the meaningful participation of women and minority groups.

We affirm our enduring commitment to the people of Afghanistan, including through a renewed humanitarian effort by the international community. To this end we support the UN in coordinating the immediate international humanitarian response in the region, including unfettered humanitarian access in Afghanistan, and will contribute collectively to that response.

As part of that, we will cooperate together and with neighbouring and other countries in the region on supporting Afghan refugees and host communities as part of a coordinated long-term regional response. We call on all partners of Afghanistan to support this effort and wider regional stability through multilateral channels.

As part of this, our immediate priority is to ensure the safe evacuation of our citizens and those Afghans who have partnered with us and assisted our efforts over the past twenty years, and to ensure continuing safe passage out of Afghanistan. We will continue to coordinate closely on this, and we expect all parties to continue to facilitate this, and to ensure the safety of humanitarian and medical personnel, and other international service providers.

We will cooperate together, and with neighbouring and other countries in the region hosting refugees, on a coordinated approach to safe and legal routes for resettlement.

We will work together, and with our allies and regional countries, through the UN, G20 and more widely, to bring the international community together to address the critical questions facing Afghanistan.

As we do this, we will judge the Afghan parties by their actions, not words. In particular, we reaffirm that the Taliban will be held accountable for their actions on preventing terrorism, on human rights in particular those of women, girls and minorities and on pursuing an inclusive political settlement in Afghanistan.

The legitimacy of any future government depends on the approach it now takes to uphold its international obligations and commitments to ensure a stable Afghanistan.

First Minister calls for more UK action on Afghanistan crisis

First Minister Nicola Sturgeon has written to Prime Minister Boris Johnson urging the UK Government to agree to resettle more than the current commitment of 20,000 Afghan refugees in the long term and 5,000 in the first year.

The First Minister says a substantial increase in numbers is required and urgently seeks further information on how many civilians, especially women, girls and others in need of refuge, will be protected – as well as further detail on the new Afghan Citizens Resettlement Programme.

The First Minister also seeks further details on a proposed four nations summit on the Afghanistan crisis, to which the Prime Minister indicated agreement in the House of Commons on 18 August.

Her letter reads:

Thank you for your letter of 20 August seeking Scotland’s continued support in resettling vulnerable Afghans in the UK and your recognition of the role Scotland is already playing under the Afghan Relocations and Assistance Policy.

I want to take this opportunity to re-iterate that Scotland is committed to playing our part in welcoming and supporting people fleeing Afghanistan, through both the programme supporting locally employed staff and resettlement of refugees. 

We will work with the UK Government, COSLA, local authorities and other partners in Scotland to support these programmes and provide people with the safety and security they need to rebuild their lives. 

I recognise the incredibly difficult circumstances in which UK officials and service personnel are operating in Afghanistan.  Their work is invaluable for those that they are able to assist, and it is crucial that the UK makes every effort to support people to reach a place of safety. 

It is imperative that these urgent evacuation operations should support as many people as possible.  I ask in particular that you seek to ensure those who have worked to support British interests in Afghanistan are able to benefit from the Afghan Relocations and Assistance Policy, whether or not they were directly employed by the UK Government.  We must do all we can to support people who are at risk because of the help and assistance they have given to us.

Scotland is proud to play our part in supporting people arriving from Afghanistan who worked in support of the UK.  I commend the work of Scottish local authorities who have received families through the Afghan Relocations and Assistance Policy and those preparing to do so. 

The Scottish Government also welcomes your announcement of a refugee resettlement programme to support Afghan nationals.  I am pleased that this will be in addition to Afghans arriving through relocation and the UK’s existing commitments to global refugee resettlement.  Refugee resettlement is about meeting the needs of the most vulnerable, and I note your approach to prioritise women and girls, as well as those at risk of human rights abuses.

While recognising the pressures on accommodation capacity, we are concerned that the commitment to resettle 20,000 refugees in ‘the long term’ and just 5,000 in the first year is not sufficient in the context of the humanitarian crisis that is unfolding.  We believe a commitment to a substantial increase in numbers is required and urgently seek further details of how civilians, especially women, girls and others in need of refuge will be protected. 

As you will be aware, all 32 of Scotland’s local authorities participated in the Syrian Resettlement Programme, with over 3,500 refugees welcomed into communities across Scotland under both that programme and the Vulnerable Children’s Resettlement Scheme. 

We want our local authorities to be able to continue to provide strong support for refugees.  To do that, we need more detail about the new Afghan Citizens Resettlement Programme, including timescales for arrivals and funding to support local authority participation, as well as wider services which are essential to support people to settle and be able to begin to rebuild their lives. 

People across our communities, including Afghans with family and friends who are still in Afghanistan, are distressed and concerned about how people will be able to leave and find a place of safety. 

I am keen to know more about options for humanitarian routes for people in Afghanistan.  In the current situation, many people will find it extremely difficult to directly reach a place of safety.  We must work to reduce the risk of people being forced to make perilous journeys or becoming vulnerable to the exploitation of traffickers. 

During the Westminster debate on Wednesday 18 August you indicated agreement to a summit with devolved nations.  I would be grateful for more detail on plans for this.

I also welcome the commitment you made during the debate that the UK will not return Afghan nationals who have sought asylum in the UK.  Given the drastic situation in Afghanistan, I expect the Home Office to consider asylum applications from Afghan nationals quickly and compassionately.  Any cases which are in the asylum appeals process, or where people have previously been refused asylum on the basis that Kabul is safe, should also be urgently reviewed.

I look forward to receiving further detail about evacuation, safe routes and resettlement from Afghanistan as soon as possible.  Scotland is committed to playing our part, and I am keen that communities across Scotland are able to be involved in the humanitarian response in solidarity with the people of Afghanistan.

NICOLA STURGEON