Opening Hours: Mon – Thurs 9am-5pm, Fri 9am-4pm
Phone Icon 01463 237300

COVID-19 Response: Deferral of July 2020 Income Tax Payments (last updated 26 March 2020)

It was announced on 20 March that self-employed individuals would be able to defer the income tax payment currently scheduled for 31 July 2020 until 31 January 2021. It has now been clarified that ALL individuals who have liabilities due in July under self-assessment are eligible for this, which will include company directors, property owners, and others who complete self-assessment tax returns.

No penalties or interest for late payment will be charged for this period.

This is an automatic offer with no applications required, but if you still wish to pay your tax on time you may do so.

The tax falling due on 31 July 2020 is the second payment on account of tax and Class 4 National Insurance for the 2019/20 tax year. You will usually already have paid an equivalent amount on 31 January 2020 towards the same year, based on your final liability for tax year 2018/19. If you are a client of CMM Accountancy, please check the letter or email that we will have sent accompanying your 2018/19 tax return to confirm details of this payment.

It's important to note that this is just a deferral. The tax will still be due, and will be due at the same time as your 2019/20 balancing payment and first instalment for 2020/21, both due on 31 January 2021. In many cases these later tax liabilities will be lower than normal due to loss of profits arising from the coronavirus outbreak and related economic shutdown. In some circumstances however (e.g. if there was significant capital investment in 2018/19) taxable profits could be higher than previously. We recommend having your 2019/20 accounts prepared as soon as possible so that the liabilities can be planned for in your business cash flow.

It's also possible that you may already have overpaid your 2019/20 tax in January this year so early accounts could trigger a much-needed tax refund.

March 23, 2020

CMM have been Xero partners and advisors since 2013.

We are MTD ready as well as being certified for Xero Payroll and for client migrations.

Contact us now to find out how to start harnessing the power of the cloud to support your business.

Location Icon The Green House, Beechwood Business Park North, Inverness IV2 3BL.
Phone Icon 01463 237300