As part of the government’s support for businesses during COVID-19, HMRC are giving taxpayers the option to defer Income Tax payments on account due in July 2020. HMRC will not charge interest or penalties provided that the deferred payment is made on or before 31 January 2021.

 

  1. Am I Eligible?
  • The scheme is open to all taxpayers who are:
    • Registered in the UK for Self Assessment; and
    • Finding it difficult to make their second payment on account by 31 July 2020 due to the impact of coronavirus.

 

  1. What Do I Need To Do Now?
  • This is an automatic offer therefore you do not need to tell HMRC that you are deferring your payment on account.
  • If you normally pay by direct debit, you should cancel the instruction with your Bank as soon as possible.

 

  1. Can I Still Pay?
  • You can still make the payment by 31 July 2020 as normal if you are able to do so.
  • You can also pay your second payment on account in full any time between 31 July 2020 and 31 January 2021.
  • Where you do not have other overdue taxes, you can make your payment in instalments any time between now and 31 January 2021 by arranging a Time to Pay instalment plant with HMRC.
  • For help, either
    • Contact Tracy Claydon (tracyc@barrons-bds.com) or Lisa Garfinkle (lisag@barrons-bds.com) who will be able to assist you and contact HMRC on your behalf if you prefer, or
    • Contact HMRC direct by
      • Using the GOV‌‌.UK website and search for ‘If you cannot pay your tax bill on time’, or
      • Call 0300 200 3835.

Barrons has put together a helpful guide to running your business during the coronavirus crisis.