3rd April 2020
HMRC have changed their earlier guidance on deferring July Income Tax payments to enable all Self Assessment taxpayers with a July 2020 instalment to defer it to January 2021.
Initially, the July tax payment deferral was only available for the self employed, as part of the Governments measures to support sole traders struggling with their finances in the current economic climate.
This gave no support to company business owners who take their income largely via dividends, the result of which that their tax is due twice a year.
The updated HMRC guidance now confirms that all taxpayers with a second Self Assessment payment on account due on 31st July 2020 can defer payment until 31st January 2021. This is an automatic deferral with no application required. No penalties or interest for late payment will be charged if the taxpayer defers payment until January 2021.
Further information can be found at https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses#support-for-businesses-through-deferring-vat-and-income-tax-payments.
Please visit the HMRC link.
S Coke, J Prevost, N Rivers, R Moore