Covid-19 - Deferral of Self-Assessment Tax Payments due 31 January 2021

In the Chancellor's Winter Statement last week it was announced that individual taxpayers can choose to defer tax due by 31 January 2021 without incurring interest or penalties.  Taxes involved are as below:

• Second Payment on Account for 2019/20 (already deferred from. 31 July 2020)
• Balancing payment for 2019/20
• First Payment on Account for 2020/21
• Capital gains tax for 2019/20

Taxpayers are able to apply for time to pay to spread the tax due over 12 monthly instalments to January 2022. The application will be agreed automatically where you apply with an online form so long as the total tax due doesn’t exceed £30,000.  

Individuals with more than £30,000 to pay will need to call the HMRC time to pay self-assessment helpline to attempt to agree a payment plan.  

We are still waiting for more details, but current thought is that it does appear possible for taxpayers to make a partial payment of tax to bring the outstanding amount below £30,000 so that they are eligible to use the automatic self-service system. 

Please contact Alison Asher if you have any questions.

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Alison Asher