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defer self assessment payment due to covid19

edited 13 July at 9:23AM in Cutting Tax
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d63d63 Forumite
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edited 13 July at 9:23AM in Cutting Tax


i have a self-assessment payment of approx. £9k coming due on july 31st, acccording to my hmrc at-a-glance webpage, that is,  but the letter i recently received says the 9k is only due by 31st january  and there will be no penalty or extra interest incurred by not paying now.


it looks like a bit of a no-brainer in that i could leave that £9k in my ns&i income bonds account and  earn about £50 or so in extra interest by deferring payment until next january but is it really that simple? i have read through the letter and that hmrc webpage here:

https://www.gov.uk/guidance/defer-your-self-assessment-payment-on-account-due-to-coronavirus-covid-19

sevral times and i cannot see any catch, but since when has hmrc ever given anyone anything for free?


is there some hidden catch here i cannot see?

Replies

  • Jeremy535897Jeremy535897 Forumite
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    Yes, there is, and it is at the start:

    "You have the option to defer your second payment on account if you’re:

    • registered in the UK for Self Assessment and
    • finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus

    You can still make the payment by 31 July 2020 as normal if you’re able to do so." And so you should.

  • PennywisePennywise Forumite
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    Yes, there is, and it is at the start:

    "You have the option to defer your second payment on account if you’re:

    • registered in the UK for Self Assessment and
    • finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus

    You can still make the payment by 31 July 2020 as normal if you’re able to do so." And so you should.

    I agree.  There's nothing to stop HMRC asking you why you couldn't pay your 31/7/00 payment and asking how Covid impacted on your ability to pay it.  Without you being able to provide a convincing argument, then late payment surcharges and interest could then be charged.
  • polymaffpolymaff Forumite
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    I've spent a lifetime pointing out that the SA300 is THE bible.
    My latest SA300 shows that I've nothing to pay until 31st January 2021.
    The "finding it difficult" is so vague.  I find it very difficult to make payments before the SA300 dates. Always have.
    On the same page as that quoted above is:
    "HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it’s paid on or before 31 January 2021."
    Now THAT'S clear-cut.

  • Jeremy535897Jeremy535897 Forumite
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    polymaff said:
    I've spent a lifetime pointing out that the SA300 is THE bible.
    My latest SA300 shows that I've nothing to pay until 31st January 2021.
    The "finding it difficult" is so vague.  I find it very difficult to make payments before the SA300 dates. Always have.
    On the same page as that quoted above is:
    "HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it’s paid on or before 31 January 2021."
    Now THAT'S clear-cut.

    It may be that the wording in quotes is conditional on you being entitled to defer in the first place, which you wouldn't be if you had the cash in the bank and were thinking of earning interest on it instead, as OP planned to do (or buy premium bonds).
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