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Stopfords

Deferral of 2019/20 Self-Assessment 2nd Payment on Account

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Early on in the COVID-19 crisis, it was announced that anyone who had a Payment on Account for 2019/20 due on 31 July 2020 could defer this until 31 January 2020 without interest being charged.

We were not sure what would happen with the issue of statements that normally start to appear in late June/early July.

Now we know…….as these as are starting to be issued…..

They show the 2019/20 2nd Payment on Account due on 31 January 2021 instead of the 31 July 2020.

This is causing confusion particularly as many 2020 tax returns have not yet been completed, so, in that case, the statement is not showing the 2019/20 balance and 2020/21 1st Payment on Account which will also be due on 31 January 2021.

Therefore, we need you to be mindful of this.

It is all well and good deferring liabilities, but it could mean quite large amounts all due at the same time – 31 January 2021, some of which are unknown at this time so cannot be budgeted for.

We are therefore, encouraging all clients to pay the 2019/20 2nd Payment on Account on or shortly after 31 July 2020 if you possibly can, so that you do not find yourself with a serious cashflow problem in January next year.

PS.

In fact, just after writing the above but before publication, a statement has been released by HMRC advising that although the deferral is effectively shown for all taxpayers, it should only be used by those who are having genuine difficulties in making the payment due to the impact of COVID-19

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