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On 31 July each year, many individual taxpayers (including Trustees) are required to make an income tax payment on account.
The government have announced a range of measures to support businesses and taxpayers in response to the challenges posed by COVID-19, which include a payment on account deferral without interest or penalties being due.
ALL tax payers due to make these payments under the self-assessment tax system have the option to defer the second payment on account due by 31 July 2020 if they are:
Please note that this deferral is optional and HMRC have advised that if taxpayers are still able to pay their second payment on account, they should do so. If you do chose to defer payment then both the 31 July 2020 payment on account and your balancing payment for the 2019/20 tax year will become due on 31 January 2021.
You may have received the usual HMRC statement setting out the payment due, however these now all have a due date of 31 January 2021, regardless of whether you wish to defer the payment or not. The usual interest and penalties will apply to missed payments from 31 January 2021.
You do not have to make a formal application or tell HMRC that you would like to defer payment, this will occur automatically.
You may want to deal with your tax return sooner rather than later, as you may be due a repayment for the 2019/20 tax year. If you would like assistance with your self-assessment tax return or wish to discuss any matters relating to self-assessment, please feel free to contact us.
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