Deferral of July 2020 Tax Payment and Time to Pay Arrangements
HM Revenue and Customs (HMRC) has confirmed that all self-assessment taxpayers are able to defer their July payment on account. The July payment will need to be paid by 31 January 2021. The deferment has been introduced to assist self-assessment tax payers, including those who are self-employed, who are suffering with cashflow issues and hardship as a result of the Covid 19 pandemic. No interest and penalties will be charged in the deferral period. The deferral is very helpful as it will assist individuals who will not have the funds set aside to cover their July payment. Anyone choosing not to pay the July payment on account should budget accordingly to ensure that they have sufficient funds to pay the larger amount on 31 January 2021 – i.e. the deferred payment plus the usual balancing payment for 2019/20.
HMRC has also expanded its time to pay facility which is intended to assist businesses and individuals with cash flow difficulties or who are in temporary financial distress as a result of Covid 19. A time to pay will assist with cashflow by spreading the tax payments over a period of time in an affordable manner. Bespoke arrangements can be agreed with HMRC on a case by case basis and will depend on each business and individual’s circumstances and liabilities. If your self-assessment tax payment is under £10,000 and you would like a time to pay arrangement, this can be arranged online.
There is a specific helpline to call – 0300 200 3835 – which is open Monday to Friday 8am to 4pm.
Below is the link to HMRC’s website with all the information you need:
We would, as always, recommend that our clients speak to us for guidance and support if they do find themselves in this situation and they will be able to speak to their CBW contacts in the usual way: through email or phone.
Please contact our tax team if you have any questions.