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Self Assessment Tax Deferral – OPT IN!

5th October 2020 | Written by In Accountancy | Categories : CoronaVirus, Personal Tax, Small Business Advice, Tax Advice
Self Assessment Tax Deferral – OPT IN!

The Self Assessment Tax Deferral outlined in Rishi Sunak’s Winter Economy Plan last month will NOT be automatically applied.

In addition to the news that the deferral for VAT payments outlined in Rishi Sunak’s Winter Economy Plan would not be automatically applied, I can also confirm that the same is true for the promised deferral of Self Assessment tax liabilities which will fall due on 31 January 2021 and which can now be spread over the entire 2021 year, to be paid in full by 31 January 2022.

This is different from the deferment of July payments on account, which was automatically applied to all who wished to take advantage of the scheme.

Please note that self-assessment tax payers with liabilities less than £30,000 can also apply online to set up instalment arrangements for paying tax liabilities. The previous threshold was for liabilities up to £10,000.

In order to take advantage of this self assessment tax deferral scheme you need to meet the following requirements:

  • Have no:
    • outstanding tax returns
    • other tax debts
    • other HMRC payment plans set up
  • The debt needs to be between £32 and £30,000
  • The payment plan needs to be set up no later than 60 days after the due date of a debt

See the links below for more on this as well as how to set yourself up to pay by instalments – please note that this is unfortunately not something which we are able to do on your behalf!

Full details of the tax self assessment tax deferral scheme:

https://www.gov.uk/government/news/self-assessment-customers-to-benefit-from-enhanced-payment-plans

Link to Access HMRC Portal to set up Deferred Self Assessment Tax payments

https://www.gov.uk/pay-self-assessment-tax-bill/pay-in-instalments

If you are unable to use the online portal for any reason, or have other debts with HMRC for which you would like to set up a Time to Pay arrangement, then you can call HMRC’s helpline on 0800 0159 559.

As we know more we will be sure to update you – any questions please feel free to ask!

My full article on the Chancellor’s Winter Economy Plan can be found here: