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Q. I am self-employed and my business has been struggling this year due to the coronavirus. I opted to defer my 31 July 2020 tax payment but I'm worried that I will not have the cash to pay the whole amount by the end of January 2021. What can I do?

A: The government is allowing self-employed people to defer self-assessment payments due, to help them manage their cash flow during the pandemic.
 
The government allowed taxpayers to defer their second 2019-20 self-assessment payment on account due on 31 July 2020 until 31 January 2021. The deferment was automatic which means that no late payment penalties or interest will be charged for the deferral period.
 
On 24 September 2020, the government announced that self-assessment payments due on 31 January 2021 (including payments on account deferred from 31 July 2020) can be paid by instalments over the 12 months to January 2022.
 
Taxpayers can apply for a payment plan by contacting HMRC's time to pay self-assessment helpline (0300 200 3822), or taxpayers with up to £30,000 of self-assessment liabilities can use HMRC's self-service time to pay facility. Interest is payable on time to pay instalments, but if the plan is set up prior to the payments becoming due there should be no late payment penalties.
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Added By: Sharon Worger on 05th Nov 2020 - 14:07
Last Updated: 05th Nov 2020 - 14:15

Number of Views: 28
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