Do I pay my Second Payment on Account by the end of July?
We have had a number of clients (existing and new) approach us regarding their recent Self Assessment Statements that they have received from HMRC. Within this statement are details of the amount due by them by the 31st of July 2020. However, within the same statement they are being told that this payment does not need to be made by the due date leading to confusion amongst our clients.
Firstly, in case you missed it, due to the impact of Covid-19, HMRC announced they will not charge any penalties or interest on any payments that were due and not paid by the 31st of July 2020.
However, it should be noted that all HMRC are doing is deferring this payment to a later date, to allow individuals more time to pay their liabilities to them and the payment has not been cancelled.
The second payment on account would still be due by the 31st January 2021 and if it’s not paid by this point then there would be penalties and interest charged on the non payment.
We have advised our clients that are in a position to make the payment due by the 31st of July 2020 to do so simply because by making the deferred payment later will only lead to a larger liability to pay in January 2021 as by this point they will have to pay the following:
· The second payment on account that was due on 31st July 2020
· Any balancing payment due for their 2019/20 Income Tax and National Insurance Liability.
· The first payment on account for 2020/21
If you require any further information or wish us to look into more detail at your self assessment then please do not hesitate to contact us by emailing us on firstname.lastname@example.org or calling us on 0191 5111217. We offer a free no obligation consultation and are available 7 days a week to discuss your tax service requirements.