Deferring payments on account as a result of Coronavirus

All self-assessment taxpayers can defer the 31 July second tax payment on account for income tax to 31 January 2021 as a result of the COVID-19 pandemic.

Taxpayers have the option to defer their second payment on account if they are:

  • registered in the UK for self-assessment; and
  • find it difficult to make the second payment on account by 31 July 2020 due to the impact of Coronavirus.

Taxpayers do not need to tell HMRC that they are deferring their payment on account and it will not prevent an individual from being entitled to other Coronavirus support that HMRC is providing.

Those who defer must make their second payment on account on or before 31 January 2021. However, please be aware that other payments you may have to make by this date include:

  • balancing payments due for the 2019 to 2020 tax year; and
  • the first payment on account due for the 2020 to 2021 tax year.

It is, therefore, highly advised that you keep the funds required to one side to ensure they are available at the start of next year.

HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it is paid on or before 31 January 2021.

Those who do not wish to defer can still make the second payment on account by 31 July 2020 as normal.

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