Today (26 March), HMRC issued guidance to confirm all UK taxpayers are able to defer their July income tax payment on account, rather than just the self-employed as originally thought. This means that all self-assessment income tax payments due on 31 July 2020 can now be deferred until 31 January 2021.
This a positive step that fairly ensures all UK taxpayers receive additional support and flexibility to work through the financial challenges arising from coronavirus.
Who is eligible for the support?
All taxpayers who are due to pay their second self-assessment payment on account on 31 July are eligible to receive HMRC’s support. Please be aware that you do not need to be self-employed to be eligible to for HMRC’s deferment.
It is worth noting that the deferment is completely optional, and if you are still able to pay your second payment on account on the originally planned date (31 July), HMRC urge you to do so.
How can I access the scheme?
The scheme is automatically applied to all those who are eligible, with no application process required. HMRC confirm that no penalty fees or interest for late payment will be issued if you choose to defer your payment until 31 January 2021.
You can read HMRC’s full guidance on the July income tax deferment here.
What other support is available?
Over the last week, we have shared a variety of blogs and useful information over on PM+M’s new coronavirus support hub.
Make sure you read our recent blog on HMRC’s new ‘Time to Pay’ scheme (accessed via this link), which provides the helpline for UK businesses and self-employed workers to call should you need support and additional time to pay your tax bills.
We have also summarised the support being offered by various banking groups (click here to read) and the Government’s different financial schemes available for businesses and individuals, including cash grants, business rates holidays, sick pay support and mortgage holidays – make sure you read our full blog here.
For further advice on any of the above matters, please contact your usual PM+M representative or give us a call on 01254 679131.
This information is correct as of 26 March 2020. This blog is for general guidance only. Recipients should not act upon any of the information provided without seeking specific professional advice tailored to your circumstances, requirements or needs. Please contact PM+M before making any decisions based on any matters relating to this blog.