In the Chancellor's Winter Statement last week it was announced that individual taxpayers can choose to defer tax due by 31 January 2021 without incurring interest or penalties. Taxes involved are as below:
Taxpayers are able to apply for time to pay to spread the tax due over 12 monthly instalments to January 2022. The application will be agreed automatically where you apply with an online form so long as the total tax due doesn’t exceed £30,000.
Individuals with more than £30,000 to pay will need to call the HMRC time to pay self-assessment helpline to attempt to agree a payment plan.
We are still waiting for more details, but current thought is that it does appear possible for taxpayers to make a partial payment of tax to bring the outstanding amount below £30,000 so that they are eligible to use the automatic self-service system.
Please contact Alison Asher if you have any questions.