For those taxpayers who will be requested to make a second payments on account of the 2019/20 tax liability, the date that was to become payable was 31 July 2020. However, HMRC have announced that this instalment can be deferred until 31 January 2021 without incurring any interest charge. The deferral is automatic and does not require an application to HMRC. In fact, the few statements of account issued by HMRC that we have seen already so the due date as being 31 January 2021 rather than 31 July 2020, so they seem to be expecting this to be the norm.
A word of warning though. If this payment is deferred until 31 January 2021, on the same date the balancing amount for 2019/20 will become payable together with the first instalment of the 2020/21. Therefore, in order to ensure you are fully aware of the extent of upcoming self-assessment payment due on 31 January 2021, we would recommend that the 2020 tax return is completed and submitted at the earliest opportunity.
If you have any questions regarding your payments, please contact us.
July 3rd, 2020