Its tax payment time again

If you submit a self-assessment tax return you may need to consider your options as any second payments on account for 2019-20, are coming due for payment 31 July 2020. In a nut-shell you have three options:

 

Defer payment until 31 January 2021

As part of his support for taxpayers during the present disruption, Rishi Sunak has given you the opportunity to defer payment of the July instalment until 31 January 2021.

This is generous, but readers should be cautious as this is not a cancellation of amounts due. If you do defer your July payment you will need to plan your cash flow carefully, as the total self-assessment tax (and possibly NIC) due 31 January 2021 will include:

  • The deferred July 2020 payment
  • Any balance of tax due for 2019-20, and
  • The first payment on account for 2020-21.

If you do defer, HMRC have confirmed that they will not charge interest or penalties as long as amounts due are paid on or before 31 January 2021.

 

Make the July 2020 payment

The deferment is an option. If you have already reserved funds you may prefer to pay the tax and reduce amounts due January 2021.

Reduce tax due 31 July 2020

A third option you could consider is applying to reduce payments on account for 2019-20 and therefore reduce the amount payable 31 July 2020? You can do this if the following applies.

The payments on account – due 31 January and 31 July 2020 – are for the tax year 2019-20. Until your tax return is filed for 2019-20, these payments on accounts will be based on figures for the previous tax year, 2018-29.

If your profits for 2019-20 are lower than those for 2018-29, then you can elect to reduce payments on account for 2019-20.

Accordingly, if you feel that your business profits or other income assessable during 2019-20 were lower than those for 2018-19, then we should consider this option.

Share:

Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
Accounting in Sheffield and Doncaster

Recently Added News

Related News

FIx your bike voucher scheme

A Fix your Bike Voucher Scheme has been launched by the Department for Transport as an incentive to encourage the numbers of people using their

What to do in Doncaster

At the heart of Doncaster Town Centre is the historic market, Regency buildings and a rich railway taking people far and wide across the United Kingdom. However,

New law clarifies redundancy rights

New legislation applies from 31 July 2020 to ensure that furloughed employees receive statutory redundancy pay based on their normal wages, rather than a reduced

Quick Links

Online References...
  • DocSafe
  • Xero
  • Iris Openbooks
  • Intuit Quickbooks
  • FreeAgent
  • MoorePayHr
  • Income Tax Rates
  • Income Tax Reliefs
  • Pension Premiums
  • Car and Fuel Benefits
  • Mileage Allowance Payments
  • Corporation Tax
  • Capital Allowances
  • Company car tax
  • VAT
  • Payslip
  • Profit analyser
  • Loan
  • Inheritance
  • Gross profit margin
  • Savings
  • Form Title One
  • Form Title Two
  • Form Title Three
  • Form Title Four
  • Form Title Five
  • Form Title Six
  • 57 ways to grow your business
  • Free Business Advice
  • Tips for Business
  • Company Search Service
  • Search for a UK business
  • Find by Company Name
  • Search by UK director
  • Comprehensive Business Database
  • Credit Checker Service
  • Comprehensive Business Database
  • Full Reports on over 1.5 million UK Limited Companies
  • Information on over 1.4 million Non-Limited Businesses
  • Businesses for sale and wanted
  • Sources throughout the UK
  • Search now
  • Business Link Yorkshire
  • Federation of Small Businesses
  • HM Revenue & Customs
  • Companies House
  • Moneyfacts
  • Data Protection
  • Law Society
Client Testimonials
Meet the Team

Sheffield Office:
2 President Buildings,
Savile Street East,
Sheffield ,
South Yorkshire,
S4 7UQ

Telephone:
0114 272 0306
Fax:
0114 272 6158
email:
sheffield@roystonparkin.co.uk

Opening Hours:

Mon-Wed: 8.30am – 5pm
Thursday: 8.30am – 7pm
Friday: 8.30am – 2pm

Doncaster Office:
3 Railway Court,
Ten Pound Walk,
Doncaster,
South Yorkshire,
DN4 5FB

Telephone:
01302 320444 / 304440
Fax:
01302 342604
email:
doncaster@roystonparkin.co.uk

Opening Hours:

Mon-Thurs: 9am – 5pm
Friday: 9am – 4.30pm