Self Assessment – Second Payment on Account, July 2020

Self Assessment – Second Payment on Account, July 2020

Due to the ongoing Covid-19 pandemic, HM Revenue & Customs have announced that taxpayers are able to defer the second payment on account for Self Assessment, which is usually due to be paid to HMRC on or before 31 July 2020.  Furthermore, they will not charge any late payment interest, provided it is paid in full on or before 31 January 2021.

The deferment is optional and there is no requirement to inform HMRC that you are not making a payment. It applies to all taxpayers under the Self Assessment system, individuals and trusts.

Please note that this is only a deferral of payment and should you decide to defer then you will have the following payments to be made by 31 January 2021:

•  Second payment on account for year ended 5 April 2020

•  Balancing payment for the year ended 5 April 2020

•  First payment on account for the year ended 5 April 2021

It also should be noted that this payment is a personal liability, so if a business (sole trader or partnership) fails between now and January 2021, the liability will still be due. If you fund personal tax payments via your business you may choose to make the payment as normal.
 
If you would like any further information please contact our Tax Partners, Steve Crompton or Lucy Williams to discuss how we can help.

 

Steve Crompton
Partner – Head of Tax
direct dial: 01942 292541
mobile: 07790 840394
email: steve.crompton@jsllp.co.uk
 
Lucy Williams
Tax Partner
direct dial: 01942 292543
mobile: 07807 053494
email: lucy.williams@jsllp.co.uk

 


 

 

 

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