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July payments on account - Don't assume these aren't payable!

JULY PAYMENTS ON ACCOUNT - DON'T ASSUME THESE AREN'T PAYABLE!

In response to the COVID-19 outbreak, HMRC announced that taxpayers could opt to defer their second self-assessment payment on account for the 2019/20 tax year if they are finding it difficult to make this payment by the normal due date of 31 July 2020 due to the impact of Coronavirus.  In these cases, HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided that it is paid on or before 31 January 2021.

We are aware that HMRC have been issuing blanket self-assessment statements recently which are showing the second payment on account as being due on 31 January 2021, rather than the normal due date of 31 July 2020.  Understandably, this has caused some confusion, and led may people to think that the deferral of the July payment on account to 31 January 2021 is automatic and applies to all taxpayers.

This is not the case; the deferral is only available to those taxpayers who are finding it difficult to make their second payment on account by 31 July 2020 due to the impact of Coronavirus.  HMRC's guidance is that you should still make the payment by 31 July 2020 as normal if you are able to do so.  However, if you are genuinely unable to make the payment then you do not need to contact HMRC or do anything further at this stage.

If you haven't received your July payslip yet and would like details of how to make your second payment on account this month then please get in touch and we can advise you.

The Author

Jackie Young

Marketing Co-Ordinator

Jackie joined Dyke Yaxley in 1979 and has worked in various departments before taking up her current role as Marketing Co-Ordinator in 2003...