If you are struggling to pay your second Self Assessment payment on account this month because of the coronavirus, you have the option to defer paying until January 2021.
The deadline for paying the second Self Assessment payment on account for the tax year ended 5 April 2020 is 31 July 2020. However, as part of the government’s coronavirus support measures, taxpayers can defer making this payment until 31 January 2021 without interest or penalty.
You have the option to defer your second payment on account if:
- You are registered for Self Assessment and
- You are finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus.
If you decide to defer the second payment on account, you will still need to pay the full amount of tax due by 31 January 2021.
You will not be charged interest or penalties by HMRC so long as the amount deferred is paid in full by 31 January 2021.
You can still make the payment by 31 July 2020 as normal if you’re able to do so.
You will still need to submit your tax return for the year ended 5 April 2020 before the Self Assessment deadline (31 January 2021).
You will still be entitled to other coronavirus support that HMRC provides for the self-employed.
What to do if you want to defer your payment on account
You do not need to tell HMRC that you will be deferring your payment on account. If you normally pay by Direct Debit, you should cancel through your bank as soon as possible. Remember, that the tax will still be due. You can pay at any time between 31 July 2020 and 31 January 2021.
Read the full information about deferring your payment on account, including ways to pay, here.