Self-Assessment Customers to Benefit from Enhanced Payment Plans

Featured UK | Prager Metis | Nov 02, 2020

2nd Payment on Accounting due 31 July 2020 Deferral
As part of the Government Support Package to deal with the COVID-19 pandemic, HMRC have announced earlier this year that:

  • The July 2020 Payment on Account may be deferred until 31 January 2021.
  • This in an automatic offer with no applications required.
  • No penalties or interest for late payment will be charged for the deferral period.

Payment plan for 2019/20 Self-Assessment Tax Liability
In addition to the above, as part of the Winter Economy plan it was announced that taxpayers can pay their tax liability by instalments if they are unable to pay in full by 31 January 2021.

Taxpayers with up to £30,000 of Self-Assessment liabilities due on 31 January 2021, whether deferred from July 2020 or otherwise due by 31 January under Self-Assessment, could make payment by instalments under a Time to pay instalment arrangement.

You can set up a payment plan to spread the cost of your 2019/20 Self-Assessment bill if:

  • You fi le your 2019/ 2020 Self-Assessment return and HMRC know what payments you owe before the 31 January 2021 payment due date
  • You owe £30,000 or less
  • You do not have any other payment plans or debts with HMRC
  • Your tax returns are up to date
  • It’s less than 60 days after the payment deadline

You do not need to contact HMRC, you can set up a payment plan online using your Government Gateway Account.

If you’re not eligible for a payment plan, or you already have a Time to Pay arrangement in place for other overdue tax or cannot use the online service – please contact HMRC helpline to discuss an option available for you.

Self-Assessment Payment Helpline

Telephone: 0300 200 3822
Monday to Friday, 8am to 4pm

Late Payment Penalties and Interest

No late payment penalties are charged if you enter into a Time to Pay arrangement before the tax liability becomes due, i.e. before 31 January 2021 and you pay all the tax owing under that arrangement on time.

Interest is payable on Time to Pay instalments at late payment interest rate of 2.6%.