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Income Tax Deferral
If you’re due to make a payment on account of Income Tax on 31st July 2020 then you have the option to defer the payment until 31st January 2021 if you are struggling to pay due to the impact of COVID-19.
You can choose to defer the payment due on 31st July if you complete a tax return and you are struggling to make the payment due to the impact of the COVID-19 crisis. This will be an automatic deferral, so does not need to be applied for. If you are still able make the payment by 31st July then it is strongly advised that you do so.
Income tax will be payable by 31st January 2021, HMRC have declared that there will be no interest or penalties for deferring the payment, provided it is paid by 31st January 2021.
Remember that on 31st January 2021 you will be paying, in addition to any deferred Income Tax, the balancing payment in relation to 2019/20 and the first payment on account for 2020/21. So if you do defer the July payment, then you could be paying a whole years tax liability at the same time.
Visit gov.uk to find out more or contact us if you require assistance with this matter.
If you require any help navigating your way through this all then please do get in touch, we are here to help.
Disclaimer: The information contained in this article is intended to be a guide and is not intended to be exhaustive. No action should be taken on the basis of information contained herein without obtaining the necessary advice. No responsibility can be accepted for loss or damages occasioned to any person acting or refraining from acting as a result of the material contained herein.
