Coronavirus: Defer your Self Assessment payment
Check what you need to do after 31 July 2020 if you chose to defer your second payment on account for the 2019 to 2020 tax year
You had the option to defer your second payment on account if you were:
- registered in the UK for Self Assessment and
- finding it difficult to make that payment by 31 July 2020 due to the impact of coronavirus
You can still pay your deferred July 2020 payment on account any time up to 31 January 2021. There'll be no interest or penalty as long as you pay in full by that date.
If you chose to defer your July 2020 payment on account
If you receive a Self Assessment statement before 31 January 2021 it may still show the deferred July 2020 payment on account as due and payable now.
You can still pay your deferred July 2020 payment on account any time up to 31 January 2021. You'll not have interest or a penalty as long as you pay in full by that date.
Some statements may also show interest accruing if you have any payments on account. This interest will only apply to those other payments, not your deferred July 2020 payment on account.
If you've submitted your 2019 to 2020 return before you got your June 2020 statement
Your June 2020 Self Assessment statement will only show the revised due date for the July 2020 payment on account, plus any payments due in the next 45 days.
If you submit your 2019 to 2020 return before the December 2020 statements are issued
Your December statement will show all payments due on 31 January 2021, these could be:
- your deferred July 2020 payment on account (if it remains unpaid)
- any 2019 to 2020 balancing charge
- your first 2020 to 2021 payment on account
Paying your Self Assessment tax bill
You can check payments you need to make towards your next tax bill by signing in to your online account.
Pay in full
You can pay your deferred July 2020 payment on account in full any time between now and 31 January 2021 using the online service.
Pay in instalments
You can pay your tax by instalments if you're unable to pay in full by 31 January 2021. If you file your 2019 to 2020 Self Assessment return early HMRC will know what payments you owe before the 31 January 2021 payment due date.
You'll then be able to set up a Time to Pay instalment arrangement with HMRC.
If you owe up to £30,000 you can do this online without having to contact HMRC directly.
When you have filed your return you'll need to wait at least 48 hours before you can set up your Time to Pay arrangement online.
Late payment penalties are charged when tax remains unpaid 30 days, 6 months and 12 months after its due date for payment. You can avoid them if you enter into a Time to Pay arrangement before they become due and you pay all the tax owing under that arrangement on time.
Interest is payable on Time to Pay instalments. Check guidance on interest rates for late and early payments.
Pay by Direct Debit
If you normally pay by Direct Debit but chose to defer your July 2020 payment on account, you should have cancelled your Direct Debit through your bank so that HMRC did not automatically collect any payment due.
You can re-instate that Direct Debit if you want to resume making payments on account this way in future.
Pay through your tax code
If you're paying taxes on an employment or occupational pension through the PAYE system, submit your 2019 to 2020 Self Assessment return online by 30 December 2020. You can ask HMRC to collect any Self Assessment tax owing through an adjustment to your tax coding. Check to see if you're eligible through your tax code.
How to get help
If you cannot pay your Self Assessment liabilities in full
You should contact HMRC as soon as you can if you are unable to pay your Self Assessment tax. HMRC is determined to help all customers as much as possible. That help may mean setting up a Time to Pay instalment arrangement with you.
If you already have a Time to Pay arrangement in place for other overdue tax, you should contact HMRC to amend that arrangement to include your deferred July 2020 Payment on Account and any other Self-Assessment payments becoming due on 31 January 2021.
Reducing your 2020 to 2021 payments on account.
Your Payments on Account are based on your previous year's tax bill. If your financial situation has been impacted by coronavirus, you may have a reduced tax liability arising for the 2020 to 2021 tax year. You may want to apply to HMRC to reduce your 2020 to 2021 payments on account.
Find out more about payments on account.
Get help online
Use HMRC's digital assistant to find more information about the coronavirus support schemes.
You can also contact the HMRC coronavirus helpline for help and advice.
First published 20 March 2020