Deferring payments on account during 2020
Individuals registered for self assessment, who will have difficulties paying the second payment on account due by 31 July 2020 due to the coronavirus, have the option to defer payment. HMRC have stated that they will not charge interest or penalties providing the amount deferred is paid by 31 January 2021.
HMRC do not need to be notified if deferment is chosen.
To assist agents, we have included a mail merge letter in our June release, which outlines the government's announcement for deferring the July payment on account.
1. Go to Practice Manager>Mail Merge
2. Highlight a Mail Merge Filter from the list or Create a new Mail Merge
3. Choose Open Mail Merge>Client Selection. Ensure the year selected is 2019 and select client options
4. Choose Template Selection.Within the 'Other' section of the Template selection list, you will see 'COVID19 deferral of payments on account due 31st July 2020'. Click on 'Use Template'
The letter shows the payment on account due on 31 July and explains how it can be deferred.
Further information on deferring other taxes can be found on our Taxes- Time to Pay blog.