{"id":883,"date":"2020-07-10T00:00:00","date_gmt":"2020-07-10T00:00:00","guid":{"rendered":"https:\/\/taxbak.co.uk\/index.php\/2020\/07\/10\/its-tax-payment-time-again\/"},"modified":"2020-07-10T00:00:00","modified_gmt":"2020-07-10T00:00:00","slug":"its-tax-payment-time-again","status":"publish","type":"post","link":"http:\/\/taxbak.co.uk\/index.php\/2020\/07\/10\/its-tax-payment-time-again\/","title":{"rendered":"Its tax payment time again"},"content":{"rendered":"<p>I<strong>f 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:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Defer payment until 31 January 2021<\/strong><\/p>\n<p>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.<\/p>\n<p>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:<\/p>\n<ul>\n<li>The deferred July 2020 payment<\/li>\n<li>Any balance of tax due for 2019-20, and<\/li>\n<li>The first payment on account for 2020-21.<\/li>\n<\/ul>\n<p>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.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Make the July 2020 payment<\/strong><\/p>\n<p>The deferment is an option. If you have already reserved funds you may prefer to pay the tax and reduce amounts due January 2021.<\/p>\n<p><strong>Reduce tax due 31 July 2020<\/strong><\/p>\n<p>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.<\/p>\n<p>The payments on account &#8211; due 31 January and 31 July 2020 &ndash; 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.<\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>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: &nbsp; Defer payment until 31 January 2021 As part of his support for taxpayers during the present disruption, [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-883","post","type-post","status-publish","format-standard","hentry","category-uncategorized","blog-left-layout","blog-style-postblock","","blog-alt-odd"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=883"}],"version-history":[{"count":0,"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/883\/revisions"}],"wp:attachment":[{"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=883"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}