In The News
Deferring your July Payment on Account
It was announced a few weeks ago that there would be the facility to delay making your July Self-Assessment payment on account. No details were provided at the time, but HMRC have now issued further guidance on how deferral will work.
Firstly, there is no requirement to tell HMRC that you are taking advantage of deferral. In a similar way to the VAT payment deferral for businesses, however, if you normally pay your tax liabilities by direct debit you will need to cancel this.
As long as all liabilities are paid on or before 31 January 2021, no interest or penalties will be charged. Don’t forget though that the payment due at this date will now include the deferred POA plus any balance of liability for 2019/20 and your first POA for 2020/21. This could require a large payment to be made in one go. Anyone struggling to meet this liability would need to apply for a Time to Pay arrangement at this point.
Full guidance can be found at https://www.gov.uk/guidance/defer-your-self-assessment-payment-on-account-due-to-coronavirus-covid-19
If you would like to discuss your personal tax situation in more detail please contact Michelle Malone at email@example.com
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