As we approach July, it’s a good time to consider the Income Tax deferral option which was announced as part of the government’s Coronavirus support measures.
The deferral option allows the second payment on account for the 2019/20 tax year, which is normally due for payment on 31 July 2020, to be deferred until 31 January 2021 without interest or penalties being charged for the period of the deferral. HMRC have now confirmed that this applies to all Self Assessment taxpayers, not just the self-employed.
It is an automatic offer and no application is required to take advantage of the deferral. However, if they prefer, taxpayers can still make the payment as normal using any of the usual payment methods.
It is important to remember that it is just a deferral of the tax payment date to 31 January 2021 and payments made after that date will potentially be subject to interest and penalties.
Self Assessment Returns should still be filed by their due date and it may be advantageous to prepare the 2019/20 Return as soon as possible. This could facilitate early planning for the tax payment due in January 2021, including consideration of claims to reduce payments on account for 2020/21.
Please contact your usual partner or manager if you would like to discuss any element of the tax position of yourself or your business. If you having difficulty paying any tax liability, we can offer advice and assistance in approaching HMRC for a time to pay arrangement.
We’re here to help
With all the legislative changes and updates over recent days in these ever changing and uncertain times, our teams are briefed and here to help you and your business.
Whilst our physical offices are closed following the ‘lock down’ advice, the team at NR Barton are working remotely from home. If you have any questions you should not hesitate to contact your engagement partner or manager who will be happy to assist; our contact details can be found here.
For anyone unsure of who to contact, we are still answering phones (01942 242245) and we are answering emails to firstname.lastname@example.org.
We’re here to help.
All the best
The NR Barton team
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