COVID-19 Update on deferring Income Tax Payments

The government has clarified that all taxpayers under self-assessment will be eligible to a deferral of their 31 July payment on account until 31 January 2021.

This will be automatically applied, so there is no requirement to apply for this deferral. However, if you do have the funds to make payment as normal you can do so. With there being no indication that amount payable in January 2021 will be reduced, paying by the usual date may prove beneficial to long term cashflow.

We are encouraging individuals to provide us with the necessary information to prepare their tax returns as soon as possible after the end of the tax year on 5 April 2020, as there might be potential to reduce the second payment on account which is due by 31 July 2020.

By providing us with this information promptly we can prepare the tax return before the 31 July 2020 payment is due and then reduce this payment on account as appropriate.

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