July 31 2020 self-assessment payment - interest if defer ?

deejaybee

Hi all,

Anyone know if HMRC will add on interest if you defer self-assessment payment that is due 31 July until 31 Jan 2021 ?

Jeremy535897

They will not charge interest.

deejaybee

Thanks Jeremy,  is that stated anywhere official ?

Jeremy535897

I think it could be clearer, but see:
https://www.gov.uk/pay-self-assessment-tax-bill
"Because of coronavirus (COVID-19), you can delay making your second payment on account. If you choose to delay, you’ll have until 31 January 2021 to pay it." This amends the deadline to 31 January 2021.

"Make sure you pay HM Revenue and Customs (HMRC) by the deadline. You’ll be charged interest and may have to pay a penalty if your payment is late." It would only be late if you miss the deadline of 31 January 2021.

Some commentators have suggested that if you don't pay by 31 January 2021, you could be charged interest from 1 August 2020.

deejaybee

Thanks again Jeremy.

To be honest i always put the money away to pay the bill,  but might leave it in Marcus earning (little) interest until end of Jan.

Jeremy535897

Yes, based on a typical interest rate of 0.05% and 6 months saving of say £5,000, you could be a whole £1.25 better off. Don't spend it all at once!

jjames1985

Jeremy535897 said:

Yes, based on a typical interest rate of 0.05% and 6 months saving of say £5,000, you could be a whole £1.25 better off. Don't spend it all at once!

the Marcus savings that the OP was going to leave it in has a rate of around 1%, so they'd about £25 better off.  I'd say it'd be enough to buy a few pints with but, well, yeah...

Jeremy535897

At the moment, maybe. BOS is dropping from 0.6% to 0.05% on their reserve accounts from July. I expect many others will too.

deejaybee

You are all correct,, it would make me about £15 over the 6 months, so will pay it as scheduled, at least that will help Rishi's balance sheet by a microscopic amount !