Most self-assessment taxpayers make one tax payment in January and a second in July each year. These are known as "payments on account".
Last week the Chancellor, Rishi Sunak, stated that the Government would be deferring July 2020 payments on account for the self-employed in order to help them through the Covid-19 crisis.
HMRC has now confirmed that this deferral will apply to all self-assessment taxpayers, not just the self-employed, and that it is an "automatic offer" with no application necessary. No penalties or interest for late payment will be charged if the July 2020 payment is deferred until 31 January 2021.
This could benefit a large number of taxpayers who, whilst not self-employed, would prefer to protect their cash-flow in these uncertain times.
If you’re due to pay a self-assessment payment on account by 31 July 2020 but the impact of the coronavirus causes you difficulty in making payment by that date, then you may defer payment until January 2021.