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HMRC PAYMENT ON ACCOUNT : 31ST JULY 2020

Urgent Notice                                           

 

HMRC Payment on Account 31st July 2020

 

The Revenue has automatically deferred the July 2020 Tax Payment to the 31st January 2021. If you have received a statement from HMRC you will see the date has already been moved.

 

Please be advised you will need to consider if this works for you, as not only will you have the July 2020 payment to make in January, you also in most cases, will have to pay any  balancing Tax due for 2019/2020 plus your first instalment for 2020/2021 all of which will be due on the same day.

 

For example let’s say your 2019/2020 total tax due is £5,000, included in your 31st January 2020 payment there was the first payment on account of say £2,000 with the next payment to be made on the 31st July 2020.This would leave a balancing charge of £1,000.

 

By deferring the July payment to the 31st January 2021 you would be paying the July instalment £2,000, plus the balancing charge of £1,000 then on top of that there will be the first payment on account of 50% of the previous year’s tax liability which in this case is £2,500.

 

The total due on the 31st January 2021 will be £2,000 + £1,000 + £2,500 = £5,500 and then a following payment on account due 31st July 2021 of £2,500.

 

We would advise you to pay your July payment on time if you can. This notice is to inform you of the outcome if you choose the deferment route.

 

Please note the above is an example only.

 

Please call or email les@huntford.net or Kathryn@huntford.net if you have any queries

 

For those clients who are self-employed and were eligible for the first SEISS grant in May, please be advised the next claim will be available in August if you are eligible.

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