26 Jan 2022Four million customers are yet to submit their completed self assessment tax return and pay any tax owed ahead of the deadline on 31 January, according to HMRC. More than 12.2 million customers are expected to complete a tax return for the 2020/21 tax year. HMRC is urging the millions of customers yet to file their tax return and pay any outstanding liabilities to do so ahead of the deadline as interest will be applied to all outstanding balances from 1 February. However, earlier this month, HMRC announced it will waive penalties for one month for late filing of tax returns and late payments. The changes mean: anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file by 28 February anyone who cannot pay their tax liabilities 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. 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. 'And if anyone is worried about paying their tax bill, they can set up a monthly payment plan online – search 'pay my self assessment' on GOV.UK.'