You may have seen that there have been some big changes by the government to help ease the mounting issues that have arisen because of the Covid-19 outbreak, one of these is the Self Assessment Payment on Account Deferral. This is the excellent additional support that the HMRC are offering those who have filed self assessments, and have a second payment on account for the 19/20 tax year, to help them if they require it, to defer the payment on their account, which is usually due by 31st July.
As accountants, we do recommend that, if you can make the 2nd payment on your account for your self assessment for the 19/20 tax year, then we suggest you make it.Why? Because the deferment has been moved to the 31st January 2021, which is the deadline for your 19/20 self assessment submission, which may mean you will have even more to pay, which could be harmful on your budgeting.If you are looking to ease the financial situation, and do wish to defer your payment, you don't actually need to tell the HMRC of this, the only thing you need to do is to cancel your direct debit with your bank, should you have this set up.
Your second Self Assessment payment on account for tax year 2019 to 2020 is due by 31 July 2020. If you think you may not be able to pay on time, you can choose to:
However, if you do choose to defer the payment, you must pay by 31 January 2021 or there will be late payment interest charged on any unpaid amounts after the deadline.We hope that you will be able to continue with normal proceedings throughout this time, but this, as well as the business bounce back loans, the job retention scheme, as well as UK Business Grants& the Corporate Business Interuption Loan Scheme (CBILS), are here to help ease the financial burden that may have occurred to your business, during this time.
