Deferral of tax payments
Last updated 22 March 2020
On 20 March the Chancellor announced that Income Tax Payments on Account that were due to be paid by 31 July 2020 will no longer have to be paid on that date, and instead will be deferred until 31 January 2021.
This deferral is automatic – there is no need to apply to, or notify, HMRC.
No interest or penalties will be charged during this deferral period.
This deferral applies to all taxpayers who pay their tax via the Self-Assessment system, not just those who are self-employed.
If your taxable income for 2019/20 is going to be lower than in 2018/19 there may be the opportunity to reduce your payments on account, and potentially claim a refund of tax already paid.
If you are self-employed there are extended Time to Payment arrangements available for PAYE and National Insurance liabilities, and an automatic deferral of VAT payments.
For further information and guidance, please get in touch.
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