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As part of the government support package to deal with the COVID-19 pandemic, Income Tax payments on account due in July 2020 under the Self Assessment system may be deferred to January 2021.

At a glance

Payments on account of Income Tax due under Self Assessment are due on 31 January, during the tax year, and 31 July following the end of the tax year.

The second payment on account for the 2019/20 tax year is due by 31 July 2020.

HMRC have announced that:

Originally badged as applying to the self-employed only, the government has since amended their guidance and it now includes all taxpayers due to make Self Assessment payments on 31 July 2020 including landlords.

Anyone who wished to make their payment by 31 July 2020 could do so. 

On 24 September 2020 as part of the Winter Economy plan it was announced that 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 in 12 monthly instalments under the time to pay arrangements. This means the final payment would not be due until January 2022.

Claims to reduce payments on account

Links

COVID-19: Government support tracker

This tracker covers measures announced by the government to support individuals and businesses, as we get through COVID-19.

COVID-19: Time to Pay

Guidance in respect of setting up time to pay agreements. 

Penalties: PAYE: late payment

Our free summary examines how late payments are charged and how to appeal.

External links

Understand your Self Assessment tax bill 

If you cannot pay your tax bill on time 

Coronavirus (COVID-19) Business support