COVID-19: Defer Your Self-Assessment Payment

As part of the government’s support for businesses during COVID-19, you have the option to defer your second payment on account if you’re:

  • Registered in the UK for Self Assessment and
  • Finding it difficult to make your second payment on account by 31 July 2020 due to the impact of Coronavirus

You can still make the payment by 31 July 2020 as normal if you’re able to do so.

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.

If You Choose To Defer

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.

You must make your second payment on account on or before 31 January 2021 if you choose to defer. Other payments you may have to make by this date include any:

  • Balancing payment due for the 2019 to 2020 tax year
  • First payment on account due for the 2020 to 2021 tax year

You can check payments you need to make towards your next tax bill by signing in to your online account, or by checking with your client partner.

Paying In Full

You can pay your second payment on account bill in full any time between 31 July 2020 and 31 January 2021 using the online service.

Paying In Instalments

You need to contact HMRC if you already have overdue tax which you’re paying through a Time to Pay instalment arrangement and want to include your second payment on account in that arrangement.

If you do not have other overdue taxes, you can make your payment in instalments any time between now and 31 January 2021 by setting up a budget payment plan.

Paying By Direct Debit 

If you choose to defer and normally make your payments on account by Direct Debit, you should cancel your Direct Debit through your bank as soon as possible so that HMRC will not automatically collect any payment due. You can cancel online if you’re registered for online banking.

After The Deferral Ends

The usual interest, penalties and collection procedures will apply to missed payments.

If you’re still struggling to pay your tax bill by 31 January 2021, or you’re experiencing other financial difficulties you can contact HMRC’s Time to Pay service or call a member of our friendly team who will do what they can to guide you through this challenging time.

Feel free to call us on 01454 619900 anytime.

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