HMRC is reminding tax payers that those who are struggling to pay their second 2019/20 Self Assessment payment, due to the Coronavirus outbreak, can defer the payment until the 31st January 2021.
To make this as hassle free as possible, to defer payment, HMRC customers will opt into the deferral by simply not paying their tax bill due by 31 July 2020. If no payment is made, HMRC will automatically update their systems to show payment has been deferred. No interest or penalties will be incurred, providing the payment is paid in full by the 31st January 2021. If you have a direct debit set up but want to deffer payment, please ensure you cancel the direct debit.
Angela MacDonald, HMRC’s Director General of Customer Services, said:
“We want to support taxpayers as much as possible as they face uncertainty and difficult circumstances. That’s why we want to remind those who may struggle to pay a tax bill right now that they have the option to defer their Self Assessment payment. They don’t need to do anything to take advantage of this deferral. By simply not paying, HMRC will know they have deferred and we will do the rest.”
Based on 2019-20 Self Assessment receipts it is suggested that the July payment deferral will provide up to £11.8 billion cash flow boost to taxpayers. Around 2.7 million taxpayers are eligible for the deferral, of which 1.3 million are self-employed.
Bear in mind that the deferred amount will be due on the 31st January 2021, the same date that any 2019/20 balancing payment and first 2020/21 payment on account will be due.
If you believe you will have difficulty paying them all in full at once, contact HMRC about paying the amounts in instalments.