Time to pay self-assessment
As part of further help to taxpayers in the current COVID-19 crisis, HMRC have announced that they will allow 31 January 2021 self-assessment payments of up to £30,000 to be spread over a maximum of 12 months by application online, rather than arrange via a lengthy call with the debt management department.
Whilst this is undoubtedly welcome, it should be remembered that interest will be charged from 1 February 2021 and that the facility will only apply if there are no other tax debts or payment plans and tax returns must be up to date.
If you do not qualify, there is still the possibility of arranging individual time to pay arrangements with the debt management department.
As things stand, the payment on account due on 31 July 2021 will still be payable on that date. Businesses that have suffered a downturn in trade should check that the automatically calculated payments on account for the 2021 year due on 31 January and 31 July 2021 are reasonable based on the expected taxable income for that year. Applications to reduce the payment on account should be made if they are believed to be excessive.
Anyone who is struggling with personal or business HMRC debts across the board should seek advice at an early date to enable repayment to be structured in the most favourable manner.
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If you have an enquiry relating to self assessment or any other tax related matter, contact us today for initial advice.