Tempting though it is, delaying paying your tax bill this month means facing a double bill in six months time. For those of you who pay through self-assessment, you will have the option to defer your normal July payment on account until January. This option was introduced in May to help taxpayers struggling with the impact of Covid-19 on their finances. This means the normal second payment, due this month, can instead be postponed until the start of next year.
The usual timetable for making self-assessment payments is that for the year just ended (2019-20) taxpayers would have already made one payment on January 31 this year and would be due to make a payment on account on July 31, with any loose ends tied up in a final balancing payment, if necessary, on January 31 next year, when the full details of an individual’s income for the year 2019-20 should be available.
July’s payment on account is for the financial year that ended on April 5, 2020, so all but two weeks of it took place before the Covid-19 lockdown was imposed, and is therefore unlikely to have had much effect on taxpayers’ income for that financial year.
However, those taxpayers who feel they will struggle to settle the 2019-20 tax bill should alert HMRC as soon as possible and ask for a Time to Pay arrangement (TTP). If you do not do this now, things could be difficult in January. HMRC is less likely to be sympathetic to those who request TTP on the day they are due to make payment.
If you have any queries, contact us on 02085300720 or email enquiries@nordens.co.uk
