17 Jul 2020

Self-employed can defer July tax bill

The self-employed are still able to defer their July tax payment if they're struggling financially as a result of coronavirus.

The Government announced that taxes due this month July 2020 can be deferred to January 2021 for self-employed Brits who are facing financial difficulty due to the pandemic.

Each payment on account is estimated, based on 50% of the previous year’s self-assessment tax bill and they are advance payments towards the current year’s tax bill.

HMRC said an £11bn cash flow boost is available to self-assessment customers by deferring the second payment on account usually due at the end of July.

This is on top of the £7.8bn paid to the 2.7 million self-employed workers via the Government’s Self-employment Income Support Scheme (SEISS).

Taxpayers won’t need to contact HMRC to defer the payment. They automatically opt-in to the deferral by not paying the tax bill by July 31, 2020. HMRC will update its systems to ensure no interest or penalties are applied, providing the tax bill is paid in full by January 31, 2021.

The only action taxpayers may need to take is to cancel their direct debit if one has been set up for the payment on account.

For more details, visit the government site here.

You can also pay in instalments. Find out more here.

Find out more about the support available to you at our Coronavirus Hub.

Coronavirus Hub

Not a Bira member - join today for £149.