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Self-assessment payments on account (originally scheduled for 31 July 2020)

Practical Issues
PinkDalek
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Self-assessment payments on account (originally scheduled for 31 July 2020)

#292872

Postby PinkDalek » March 21st, 2020, 12:04 pm

For anyone who may have missed it, The Chancellor has announced that self-assessment payments on account, which would originally have been due on or before 31 July 2020 are to be deferred until January 2021.

Looking for a professional summary finds:

https://www.icaew.com/insights/coronavirus/uk-practical-business-advice-covid-19 includes:

Income Tax payments

Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.

Income Tax Self-Assessment payments due on the 31 July 2020 will be deferred until the 31 January 2021. This is an automatic offer with no applications required. No penalties or interest for late payment will be charged in the deferral period.


There are other useful resources on that page.

mike
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Re: Self-assessment payments on account (originally scheduled for 31 July 2020)

#292874

Postby mike » March 21st, 2020, 12:10 pm

Yes, I'd heard that, but had assumed it was for the self-employed etc. I am retired but have to do Self-Assessment due to dividends received in a non-sheltered account.

Do I understand correctly that all SA payments on account can be delayed ?

PinkDalek
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Re: Self-assessment payments on account (originally scheduled for 31 July 2020)

#292879

Postby PinkDalek » March 21st, 2020, 12:16 pm

mike wrote:Do I understand correctly that all SA payments on account can be delayed ?


That is what it reads like but I'd wait for the precise detail when available, assuming you make payments on account in July in the first place. They are not talking about those who usually settle up once a year in the January following the tax year concerned (or possibly via Notices of Coding etc).

richlist
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Re: Self-assessment payments on account (originally scheduled for 31 July 2020)

#292902

Postby richlist » March 21st, 2020, 1:27 pm

I'm in a similar situation.....income tax and CGT due on investment property......don't know if I'm also included in announcement.

PinkDalek
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Re: Self-assessment payments on account (originally scheduled for 31 July 2020)

#292918

Postby PinkDalek » March 21st, 2020, 2:25 pm

More info. in, better info. out.

richlist wrote:income tax ... due


Under self-assessment and due when?

CGT due on investment property


Under the old system - due on or before 31 January 2021 if a disposal in 2019/20 so no apparent change there - or under the new system due within 30 days of contract completion or something like that?

Date of disposal(s)?

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Re: Self-assessment payments on account (originally scheduled for 31 July 2020)

#292941

Postby richlist » March 21st, 2020, 4:09 pm

I'll have rental income this tax year 2019/20 so normally I would make a payment 31st July 2020,

I'll have capital gain from property sold in September 2019 which will be entered on my 2019/20 SA.....I guess that will be due 31st January 2021

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Re: Self-assessment payments on account (originally scheduled for 31 July 2020)

#292969

Postby PinkDalek » March 21st, 2020, 5:31 pm

richlist wrote:I'll have rental income this tax year 2019/20 so normally I would make a payment 31st July 2020,


That would be your second payment on account under Self-assessment in respect 2019/20. I've yet to see a reason why that payment date will not be automatically deferred until on or before 31 January 2021 but, as always, any devil would be in the detail which I've yet to find *** (if it exists).

Incidentally, you may be indicating your rental income is coming to an end or reducing. If that's the case see the Reduce your payments on account section here https://www.gov.uk/understand-self-assessment-bill/payments-on-account but there would be no rush as any Income Tax payment is not now due until January 2021 (if I'm correct). By which time you'll probably have submitted your 2019/20 Tax Return. Unless you are one of those who leaves such matters late.

I'll have capital gain from property sold in September 2019 which will be entered on my 2019/20 SA.....I guess that will be due 31st January 2021


There is presently no change proposed to such a CGT liability for 2019/20, which would normally be due on or before 31 January 2021 as you say.


*** I'll try and post the detail when I have found it but if anyone has a link to the draft statute or maybe Statutory Instrument (when available) please feel free to update this thread.

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Re: Self-assessment payments on account (originally scheduled for 31 July 2020)

#293092

Postby richlist » March 22nd, 2020, 8:17 am

That's helpfull, many thanks.

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Re: Self-assessment payments on account (originally scheduled for 31 July 2020)

#293246

Postby PinkDalek » March 22nd, 2020, 6:19 pm

richlist wrote:That's helpfull, many thanks.


Looking at https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses#support-for-businesses-through-deferring-vat-and-income-tax-payments I must say that I no longer can assume I am necessarily correct.

It includes:

Eligibility

If you are self-employed you are eligible.


Is that poor wording or are all Income Tax Self-Assessment taxpayers eligible, including the self-employed for emphasis?

The earlier ICAEW link made no mention of self-employed being the only group to benefit.

Maybe it will become clearer next week.

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Re: Self-assessment payments on account (originally scheduled for 31 July 2020)

#293460

Postby supremetwo » March 23rd, 2020, 2:33 pm

PD, from your link, seems that HMRC will automatically apply for all those who are eligible.

Link now says updated 23 March.

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Re: Self-assessment payments on account (originally scheduled for 31 July 2020)

#293557

Postby PinkDalek » March 23rd, 2020, 8:39 pm

Yes, thanks, that was there before and was in my OP (from the ICAEW link) but the Eligibility criteria is now unclear, to me at least.

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Re: Self-assessment payments on account (originally scheduled for 31 July 2020)

#293592

Postby PinkDalek » March 24th, 2020, 1:23 am

As I wrote earlier I'd wait for the precise detail when available but, further on this, I note that https://www.icaew.com/insights/coronavirus/uk-practical-business-advice-covid-19 has now been updated to include:

Eligibility is limited to the self-employed ie, the deferral does not apply to those that are in self assessment but are not self-employed. The Tax Faculty has sought clarification from HMRC but our current understanding is that the deferral applies to any taxpayer who was self-employed in the 2018/19 tax year on which the payment on account is based.

I hope
richlist wrote:.
is still reading this Topic.

richlist
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Re: Self-assessment payments on account (originally scheduled for 31 July 2020)

#293607

Postby richlist » March 24th, 2020, 7:36 am

Yes I've just seen it. Thanks for the clarification.

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Re: Self-assessment payments on account (originally scheduled for 31 July 2020)

#294588

Postby PinkDalek » March 26th, 2020, 8:59 pm

richlist wrote:Yes I've just seen it. Thanks for the clarification.


It has changed again.

The latest Updated 26 March 2020 at https://www.gov.uk/government/publicati ... x-payments contains:

Income Tax

For Income Tax Self-Assessment, payments due on the 31 July 2020 may be deferred until 31 January 2021.

Eligibility

You are eligible if you are due to pay your second self-assessment payment on account on 31 July. You do not need to be self-employed to be eligible for the deferment.

The deferment is optional. If you are still able to pay your second payment on account on 31 July you should do so.

How to access the scheme

This is an automatic offer with no applications required. ...


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