The Chancellor has today announced an extension for the deferral of Self-Assessment tax payments due in January 2021, which is expected to benefit around 11 million Self-Assessment taxpayers. This is in addition to the deferral which was previously announced in respect of Self-Assessment tax payments due in July 2020 and means that payments deferred from July 2020, and those due in January 2021, maybe deferred until January 2022. This new extension will be offered via HMRC’s “Time to Pay” facility rather than being automatic and therefore individuals who want to defer their January 2021 payments will need to apply directly to HMRC. Individuals with liabilities of up to £30,000 will be able to apply online and individuals with liabilities exceeding £30,000 will need to contact HMRC’s Payment Support Service on 0300 200 3835. This new extension will be facilitated via HMRC’s “Time to Pay” facility rather than being automatic and therefore individuals who want to defer their January 2021 payments will need to contact HMRC’s Payment Support Service on 0300 200 3835. We expect that HMRC will charge interest on deferrals of tax payments from January 2021 as would usually be the case under a Time to Pay arrangement, however, this has not yet been confirmed. 

Hawsons will be writing to all affected clients in due course. If you have any queries regarding your tax payments and would like to discuss these with us, please get in touch with your usual Hawsons contact or Jenny Brown, Senior Tax Manager at Hawsons (email – [email protected], telephone 0114 266 7141).

Free initial consultation