HM Revenue and Customs have in the last few days issued further guidance on self assessment payment deferrals.
Taxpayers have the option to defer their second payment on account provided they are registered in the UK for self assessment and are finding it difficult to make a second payment by 31 July 2020, due to the catastrophic impact COVID 19 has had on the economy.
If you choose to defer your second payment
Taxpayers do not need to tell HMRC that they are deferring the payment on account, and choosing to defer will not stop people from being entitled to other coronavirus support.
HMRC have confirmed that they will not charge interest or penalties on any amount of the deferred payment on account, provided it is paid before 31 January 2021.
Other payments which may need to be paid by this date include any balancing payment due for the 2019/20 tax year together with the first payment on account for 2020/21.
If you want to pay in instalments
You need to contact HMRC if you already have overdue tax which you’re paying through a Time to Pay instalment arrangement and want to include your second payment on account in that arrangement.
If you do not have other overdue taxes, you can make your payment in instalments any time between now and 31 January 2021 by setting up a budget payment plan.
Get in touch
If you require assistance in relation to anything mentioned in this article, please get in touch with a member of our team.