TT325: Self-assessment July 2020 payment on account deferral
A reminder to ALL self-assessment taxpayers, not just the self-employed, that you are eligible to defer your July 2020 payment on account until January 2021.
The Government’s official announcement is as follows:
You have the option to defer your second payment on account if you’re:
- registered in the UK for Self-Assessment and
- finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus
You can still make the payment by 31 July 2020 as normal if you’re able to do so.
The June 2020 Self-Assessment statements showed 31 January 2021 as the due date for paying the July 2020 Payment on Account. This is because HMRC updated their IT systems to prevent customers incurring late payment interest on any July 2020 Payment on Account paid between 1st August 2020 and 31 January 2021. The deferment has not been applied for all customers by HMRC and it remains optional.
HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it’s paid on or before 31 January 2021.
The deferral provides some much needed relief for tax payers to help maintain personal cash resources during the Covid-19 crisis and provide time to bring their 2019-20 tax year affairs fully up to date ensuring they know exactly what liability will be due come 31 January 2021.
If you have any queries regarding the above please speak to a partner at Barnes Roffe.
Talk to Barnes Roffe today