As one of the Government’s coronavirus (COVID 19) supporting measures, Self Assessment taxpayers were given the option of deferring payment of their July 2020 Payment on Account until 31 January 2021.
If you deferred this payment, you may have had these 3 payments to make on 31 January 2021:
- your deferred July 2020 payment on account (if it remains unpaid)
- any 2019 to 2020 balancing charge
- your first 2020 to 2021 payment on account
HMRC has offered taxpayers the option to spread their payments. If you owe less than £30,000 you can apply direct via your government gateway but must do so by midnight on 1st April to avoid a 5% penalty. If you do not have one, you can apply for a gateway.
If you cannot use the gateway you should contact HMRC on 0300 200 3822 as soon as possible.
Have you thought about reducing your payments on account?
Your Payments on Account are based on your previous year’s tax bill. If your financial situation has been impacted by Coronavirus, you may have a reduced tax liability arising for the 2020 to 2021 tax year. You may want to apply to HMRC to reduce your 2020 to 2021 payments on account. If this applies to you then please get in touch.
Content kindly supplied by Maynard Johns Chartered Accountants