Covid-19 has been a huge player in the financial year so far, the latest update is that you are now able to choose how and when you can delay making your second payment on your account for the tax year 2019-2020.
If you are registered in the UK for Self Assessment and are finding it challenging to make your second payment on your account by the 31st July 2020 deadline, due to the impact of the coronavirus pandemic; you have the option to defer your second payment.
It should be noted that you can still make the payment by the deadline as normal if you are in the position to do so. However, HMRC will not be charging interest or any penalties on any amount deferred, provided that it is paid on or before the 31st January 2021 deadline.
Choosing to Defer
You are not required to tell HMRC that you have chosen to defer your payment on account. Choosing the option to defer will not stop you from being entitled to other coronavirus related support that is provided by HMRC.
You will need to make your second payment on account, on or before the 31st January 2021 if you choose to defer.
Paying in Full
You can still choose to pay your second payment on account bill in full at any time between 31st July 2020 and 31st January 2021 by using the online service.
Paying in Instalments
You will need to get in contact with HMRC if you already have an overdue tax bill which you’re paying through a Time to Pay instalment arrangement and want to include your second payment on account in that arrangement.
If you do not currently have other overdue taxes, you are able to make your payment through instalments at any time between now and 31st January 2021 by setting up a budget payment plan.
Payments through Direct Debit
If you have chosen to defer and normally make payments via Direct Debit, you should contact your bank and cancel your Direct Debit as soon as possible. This is so that HMRC doesn’t automatically collect any payment that is due.