Next self-assessment payment on account deadline just days away

Jul 27, 2020

The second self-assessment payment on account deadline for 2019/20 is this Friday 31 July 2020. As announced by the Chancellor in March, taxpayers can choose to defer this payment on account in whole or in part to 31 January 2021. However, they are reminded that by doing so three payments may fall due on this date (the 2nd deferred payment on account for 2019/20, the balancing payment due for 2019/20 (if any) and the 1st payment on account for 2020/21). The detailed guidance on deferring payment to 2020/21 should be referred to.

The deadline for paying the second self-assessment payment on account of income tax (plus class 4 NIC if the taxpayer is self-employed) for 2019/20 is Friday 31 July 2020, unless payment is deferred in whole or in part. Payment is due by midnight on that date to avoid interest arising.

Remember that two payments on account are generally required every year unless the last self-assessment tax bill was less than £1,000; or the taxpayer has already paid more than 80 percent of all the tax owed.

The payment due is generally half of the previous year’s tax bill (2018/19) with any balancing payment for 2019/20 due by 31 January 2021.

Please note that HMRC has advised Chartered Accountants Ireland that self-assessment statements recently issued automatically show the due date for the 31 July 2020 instalment as 31 January 2021. However not every taxpayer may wish to defer this payment. Recently issued statements also refer taxpayers to the relevant page where there is more information regarding deferral.