Self-assessment payment on account deferrals guidance updated

Oct 19, 2020

Following on from the Chancellor’s announcements in the Winter Economy Plan, HMRC has updated its guidance on deferral of self-assessment payments on account if you or a client chose to defer the second payment on account for the 2019/2020 tax year. A further deferral mechanism for self-assessment payments on account was a lobbying matters for this Institute and a recommendation in its Next Financial Year paper.

The option to defer the second 2019/20 payment on account due on 31 July 2020 was available if you were:

  • registered in the UK for self-assessment; and
  • finding it difficult to make that payment by 31 July 2020 due to the impact of coronavirus

If you chose to defer your July 2020 payment on account

If you receive a self-assessment statement before 31 January 2021 it may still show the deferred July 2020 payment on account as due and payable now. You can still pay your deferred July 2020 payment on account any time up to 31 January 2021. You’ll not have interest or a penalty as long as you pay in full by that date. However, it should be noted that a further deferral mechanism may be available further details of which are expected in the coming weeks.

Some statements may also show interest accruing if you have any payments on account. This interest will only apply to those other payments, not your deferred July 2020 payment on account.

If you’ve submitted your 2019/2020 return before you got your June 2020 statement

Your June 2020 self-assessment statement will only show the revised due date for the July 2020 payment on account, plus any payments due in the next 45 days.

If you submit your 2019/2020 return before the December 2020 statements are issued

Your December statement will show all payments due on 31 January 2021, these could be:

  • your deferred July 2020 payment on account (if it remains unpaid);
  • any 2019/2020 balancing payment; and
  • your first 2020/2021 payment on account.
Once again, these payments may be subject to a new deferral mechanism further guidance on which is expected soon.