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Deferring Income Tax payments for Self-employed and Individuals

Deferring Income Tax payments for Self-employed and Individuals

What is it?

HMRC will support self-employed and individuals by deferring Income Tax payments. For Income Tax Self-Assessment, payments due on the 31 July 2020 may be deferred until 31 January 2021.

How does it work?

You are eligible if you are due to pay your second self-assessment payment on account on 31 July. You do not need to be self-employed to be eligible for the deferment.

The deferment is optional. If you are still able to pay your second payment on account on 31 July you should do so.

This is an automatic offer with no applications required. No penalties or interest for late payment will be charged if you defer payment until January 2021.

What don't we know yet?

We will update this section as soon as we have more information.

Who is it for?

It applies to all taxpayers who are due to pay a self-assessment payment in July and not just those who are self-employed.

Trusts can also defer payment.

What should I do next?

During the deferral period, you can set up a budget payment plan to help you pay the deferred payment on account when it comes due.

If you’re in temporary financial distress because of COVID-19 more help is available from HMRC’s Time to Pay scheme. You can read our briefing on HMRC’s Time to Pay scheme here.

If you are a business or individual that has a direct debit set up with HMRC, for your income tax payments, you need to cancel your direct debit with your bank to ensure money is not debited from your account.

Critchleys Clients: If you have specific questions, please contact your Critchleys Accountant directly.

 


Published 26 March 2020
Last Updated 27 April 2020

27 April 2020
Trusts can also defer payment.

1 April 2020

  1. Who is it for? It applies to all taxpayers who are due to pay a self-assessment payment in July and not just those who are self-employed.

  2. What should I do next? During the deferral period, you can set up a budget payment plan to help you pay the deferred payment on account when it comes due.

    If you’re in temporary financial distress because of COVID-19 more help is available from HMRC’s Time to Pay scheme. You can read our briefing on HMRC’s Time to Pay scheme here.

26 March 2020
First published.

Find out more about Liz Higgins

Liz Higgins

Liz Higgins

Liz is the Head of Private Client Tax at Critchleys LLP.

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