Self Assessment Taxpayers Can Defer Their July Payment On Account
There will be no penalties or interest either ...
POSTED BY ROGER EDDOWES ON 30/07/2020 @ 8:00AM
HMRC is reminding self-assessment taxpayers who are facing difficulty that they can automatically defer their July payment on account. This is an £11.8 billion boost for the economy ...
The payment on account deferral will be automatic if you don't pay!
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Individuals registered for self-assessment should pay their second 2019/20 payment on account by 31st July, but HMRC is allowing a deferral of this payment until 31st January 2021. This is due to the Government support schemes implemented during the Coronavirus outbreak.
"This option to defer is in addition to schemes such as SEISS!"
This deferral allows businesses and individuals to keep cash at their disposal during these extraordinary times. To make it as hassle-free as possible, HMRC says to simply not pay their payment on account by the end of the month. There is no need to register.
When HMRC receives no payment, they will automatically update their systems to show a payment deferral. No interest or penalties will be incurred, as long as it is paid in full by 31st July 2021.
Projections based on last years self-assessment receipts show that the July deferral will provide an £11.8 billion cashflow boost into the economy for taxpayers.
"Around 2.7 million taxpayers are eligible for this deferral!"
However, as I've mentioned before, you should think very carefully before deferring your payment on account. If you can afford to pay it now, then I recommend you do as three separate payments becoming due by 31st January 2021 may be too much for some.
Until next time ...
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About Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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