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Business News

Deferring your July Income Tax payment

03/07/2020

If you are due to make a payment on account of Income Tax on 31st July 2020, then you have the option to defer the payment until 31st January 2021.

If you complete a tax return and are due to make a payment on account (on 31st July) you can defer this payment. You can do this if you are struggling to make the payment due to the impact of the COVID-19 crisis.

This is an automatic deferral, so it does not need to be applied for, but you can still make the payment by 31st July if you are able to do so.  The deferred payment will then need to be made on or before 31st January 2021 – there will be no interest or penalties for deferring the payment, provided it is paid by 31st January 2021.

It is worth remembering that on 31st January 2021 you will be paying, in addition to any deferred Income Tax, the balancing payment in relation to 2019/20 and the first payment on account for 2020/21. So if you do defer the July payment, then you could be paying a whole years tax liability at the same time.

If you are struggling to pay taxes generally then it is possible to agree on an instalment plan with HMRC to spread the payments, but there will be an interest charge for late payments.

If you require any support on this, please contact us today on 02037134530 or email me on nicky.owen@carringtongroup.co.uk.