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Deferral of Income Tax

Available: CLOSED

Region: UK Wide

On 24th September 2020 as part of the Winter Ecomony Plan it was announced that taxpayers with up to £30,000 of Self-Assessment liabilities due on 31st January 2021, whether deferred from July 2020 or otherwise due by 31st January 2021 under self-assessment, could make payment in 12 monthly instalments under the time to pay arrangements. This means the final payment would not be due until January 2022.

  • No specific announcement has been made about whether interest will be charged, however as this will be under the existing time to pay arrangements it is likely that it will be.
  • No eligibility criteria have yet been released and it may be that taxpayers will need to provide evidence that they are unable to pay on time.

Overview

All Income Tax payments due on the 31st July 2020 (I.e. payments on account) will be deferred until 31st January 2021.

No penalties or interest for late payment will be charged in the deferral period.

However it has been recently announced that taxpayers could make payment in 12 monthly instalments under the time to pay arrangements for all self-assessment liabilities due by 31st January 2021. This means the final payment would not be due until January 2022.
 

How to apply

Further details to be released.
                                    
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