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COVID-19 Information Hub

Coronavirus – Government Support Through Deferring Income Tax

On 20 March 2020, the Chancellor announced an update on the Self Assessment Tax Deferral - Enhance Time To Pay.

Updated 24/09/20

LATEST NEWS 24/09/20:

The self-employed and other taxpayers will be given more time to pay taxes due in January 2021, building on the self-assessment deferral provided for payments on account in July 2020.

Taxpayers with up to £30,000 of self-assessment liabilities due will be able to use HMRC’s self-service Time to Pay facility to secure a plan to pay over an additional 12 months. This means that self-assessment liabilities originally due in July 2020 will not need to be paid in full until January 2022. Any self-assessment taxpayer not able to pay their tax bill on time, including those who cannot use the online service, can continue to use HMRC’s Time to Pay Self-Assessment helpline to agree a payment plan.

Government guidance:

Income Tax

For Income Tax Self-Assessment, payments due on the 31 July 2020 may be deferred until 31 January 2021.

Eligibility

You are eligible if you are due to pay your second self-assessment payment on account on 31 July. You do not need to be self-employed to qualify for the deferment.

The deferment is optional. If you are still able to pay your second payment on account on 31 July, you should do so.

How to access the scheme

This is an automatic offer with no applications required. No penalties or interest for late payment will be charged if you defer payment until January 2021.

HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of COVID-19 and have outstanding tax liabilities.

Kirk Rice commentary:

The government has now updated this guidance as it previously only applied to the self-employed. It is now the case that ALL taxpayers that have a self-assessment payment on account due on 31 July 2020 may defer payment until January 2021.

We’ll be updating this page for the answers as and when they become available, so please, do check back regularly for further information.

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