To help those businesses who are suffering as a result of the Covid-19 pandemic, the UK Government have announced that can delay making their second payment on account how and when self-assessment taxpayers can delay making your second payment on account for the 2019 to 2020 tax year. The payment would normally by due by 31 July 2020.
HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it’s paid on or before 31 January 2021.
Please note that you will still need to submit your Self Assessment tax return to HMRC on time. You do not need to tell HMRC that you’re deferring your payment on account. Choosing to defer will not stop you from being entitled to other coronavirus support that HMRC provides.
Delay not cancellation
The option on offer is a deferral option not a cancellation. HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it’s paid on or before 31 January 2021.
You can check payments you need to make towards your next tax bill by signing in to your online account.
Should I pay if I can?
The deferral option is clearly advantageous to those whose cashflow has been adversely hit during the Covid-19 pandemic. Inclusive of but not limited to non-essential services such as salons and those operating in the hospitality, leisure or retail sectors.
The decision as to whether to pay or defer is a personal one; but the option to choose is at everyone’s disposal.
For any further information, please e-mail us on info@cloudtaxltd.com. You can also contact the HMRC website for help and advice.