Coronavirus update – Time to pay self assessment tax 14/10/2020
| As part of the pandemic support, self – assessment taxpayers have been able to defer the July 2020 payment to 31st January 2021, without incurring interest or penalties. A further deferral beyond 31st January 2021 is now available, though not automatic nor as generous. Here are the main points: -Payment of tax due on 31st July 2020 can be deferred up to 31st January 2021, and no interest or penalties will arise if it is paid in full by 31st January. -Payment of tax due at 31st January 2021 can be paid by monthly instalments over a period of up to 12 months, using HMRC online self-serve ‘Time to Pay’ service, subject to the following conditions. -The 2020 Tax Return has been filed and there are no earlier years outstanding; there are no other tax debts nor payment arrangements in force; the tax due does not exceed £30,000 and is less than 60 days overdue. -Tax due in excess of £30,000 may be given a time to pay arrangement, but cannot be done via the online service and will require calling HMRC. Tax being paid under a time to pay arrangement will be charged interest on any outstanding balance from 1st February 2021. -Late payment penalties normally arise on tax unpaid 30 days after the due date ( and after 6 and 12 months). These penalties will only be avoided if a time to pay arrangement has been made before the penalties arise, and if the arranged payment schedule has been adhered to. For the full text of the HMRC guidance Click here |
