Covid-19 - Self Assessment ... Second payment on account (31 July 2020) information

We are approaching the payment date for the self-assessment second payment on account (31 July 2020).

As part of their Covid-19 support package, HMRC have announced that the July payment on account can be deferred to 31 January 2021, if tax payers wish to do so (without incurring penalties or interest charges).

This deferment is automatic and need not be applied for.

HMRC are however still sending out self-assessment statements at this time, but these statements do show that these payment can be deferred.

You can, if you wish, make the payments as normal, or anytime between now and 31 January 2021.

We envisage that the majority of tax payers will take HMRC up on this offer, however, as a word of caution, if you do choose to defer the payment, your tax liabilities due on 31 January 2021 may be increased, as not only will you be required to pay this deferred amount, you will also have any balancing payment for 2019/20 and first payment on account for 2020/21 to pay.

We would therefore advise all our clients to send in their tax return information as soon as possible, to compute their liabilities, well in advance of the deferred payment date.

Should you wish to discuss this in more detail, please feel free contact us.

Take care, stay safe.

#TeamWaltons