July 2020 Self-Assessment Payments on Account

18th June 2020

Due to Coronavirus, taxpayers who pay their tax via self-assessment have the option of delaying the payment on account due by 31st July 2020 until 31st January 2021. 

To qualify, you must be registered in the UK for self-assessment and finding it difficult to make the second payment on account by 31st July 2020 due to the impact of Coronavirus. 

You can, if you choose, still make the tax payment due by 31st July 2020. 

HMRC will not charge interest or penalties if you decide not to make the tax payment by 31st July 2020 as long as the tax is paid in full by 31st January 2021. 

If you do choose to defer the tax payment, you do not need to advise HMRC of this. 

Choosing to take a deferment will also not impact on any other Coronavirus support which you are receiving from HMRC. 

Please do note that in January 2021 you may also have a balancing payment due for the 2019/20 tax year plus the first payment on account for the 2020/21 tax year so this could increase the total liability due. 

The above deferment only relates to the July 2020 payment on account.  If you have any other tax owing to HMRC this should still be paid as normal as interest and penalties could be accruing on older liabilities. 

If in January 2021 you are still not in a position to pay the tax owing, please refer to HMRC’s time-to-pay advice – https://www.gov.uk/difficulties-paying-hmrc