You may already have one of these, or in the coming weeks/months receive one, instructing you that your payment deadline is now 31st January 2021. In normal circumstances, individuals with an annual personal tax liability of £1,000 or more are due to pay two tax installments each year. One by the 31st January (January installment) and the other by the 31st July (July installment). The upcoming July installment has been extended by the Government to a new payment deadline of the 31st January 2021.
If you have received a letter or message from HMRC recently instructing you to pay your tax liability by the 31st January 2021, this is likely to be in relation to what would have been your July 2020 installment. You may choose to pay this installment now, or anytime up to the 31st January 2021. However, the government have not made any suggestion that the January instalment date will be extended and therefore it seems probable that for those individuals choosing to delay paying their July installment to the 31st January 2021 will have a double hit come next January.
You can find out further information about the scheme here >> https://www.gov.uk/guidance/defer-your-self-assessment-payment-on-account-due-to-coronavirus-covid-19
If you have any questions related to COVID-19 or self assessment tax returns, please get in touch to talk to the team.
Thanks for stopping by,
The Business Hut Team.