Update on the deferral on July payments to January 2021 by Owen Kyffin

Jul 21, 2020

The Institute of Tax have provided some further guidance following an HMRC statement. 

It seems that everyone getting a statement showing the July instalment not due until 31st January 2021 was a necessary fudge on HMRC’s part.  They have explained the only way to stop interest arising for people who needed to defer their July 2020 payments on account to January 2021 was to change the due date across the board.

HMRC have made it clear that deferral is not automatic and is available only to taxpayers who are finding it difficult to make their second payment on account by 31 July 2020 due to the impact of coronavirus.  Taxpayers who can pay as normal at the end of July 2020 should do so as normal.

More details from the Chartered Institute of Taxation can be found below, as well as Owen Kyffin’s previous blog post on this topic. If you have any queries related to this matter, please contact your tax advisor.