Over 92 per cent of people expected to file a tax return have done so either individually or with the help of a tax accountant by the extended deadline of 28th February 2022, according to a study by HM Revenue and Customs.
HMRC also reported that of the 11.3 million people who were expected to file a tax return, over a million of them filed it in February, taking advantage of the one month grace period provided to help people factor in the effects of the last year.
People subsequently have until 1st April to pay their outstanding tax bill if they have failed to do so or set up an arrangement or payment plan under the Time to Pay scheme to avoid receiving a penalty for late payment.
The Time to Pay scheme allows businesses or individuals to spread their tax payments over time, as long as their tax bill comes to less than £30,000, have no other payment plans, are up to date with tax returns and is no later than 60 days after the payment deadline.
There is a range of payment methods to pay a self-assessment tax bill, including weekly or monthly direct debits.
Payment plans are tailored to individuals and businesses based on affordability, which for individuals is to ensure that no more than half of their disposable income goes on taxes and based on the individual financial circumstances for businesses.
Financial Secretary to the Treasury, Lucy Frazer, credited the extension with helping self-employed people and businesses during what has in many cases been a difficult time for businesses.
The HMRC also noted that 1.3 million customers expected to file a self-assessment had not done so by the extended deadline and noted that the late filing penalty of £100 would still apply beyond this date, with interest applied the longer it remained unpaid.