Income Tax – Second Payment on Account for 2019/2020 can be Deferred
Post Author:
Anne Melville
Date Posted:
July 10, 2020
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As advised in an earlier blog, self-assessment taxpayers can choose to defer their second payment on account for 2019/2020 if they will find it difficult to make payment due to the current Coronavirus pandemic.
The second payment on account is due for payment by 31 July 2020 but this can be deferred until 31 January 2021. HM Revenue & Customs (HMRC) will not charge late payment interest or penalties provided the payment is made in full by 31 January 2021.
HMRC have had to update their computer system to ensure that there are no late payment interest or surcharges automatically applied for those who choose to defer making the payment. As a result, the latest statements of account being issued to all taxpayers show the due date for payment of the second payment on account as 31 January 2021.
This has caused some confusion to those taxpayers who wish to make the payment due by the end of the month. The deferment is optional and anyone who wants to and who has the means to pay can of course do so as normal by the end of July 2020.
Taxpayers who choose to defer the payment do not need to advise HMRC that they are doing this or make any formal application to them. Choosing to defer payment will not prevent the taxpayer being able to claim other Coronavirus support from HMRC that they may be entitled to.
However, if a taxpayer chooses to defer and normally pays HMRC by Direct Debit, they will need to remember to cancel their Direct Debit instruction to their bank.
The information in this blog provides only an overview of guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed guidance and legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.
