If you're registered in the UK for Self Assessment and are finding it difficult to make your second payment on account by 31 July 2020, due to the impact of coronavirus, you can defer this payment.
You can still make the payment by 31 July 2020 as normal if you’re able to do so, but if you do wish to defer this payment, here's what you need to know:
You do not need to tell HMRC that you’re deferring your payment on account.
Choosing to defer will not stop you from being entitled to other coronavirus support that HMRC provides.
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.
You must make your second payment on account on or before 31 January 2021 if you choose to defer. Other payments you may have to make by this date include any:
balancing payment due for the 2019 to 2020 tax year
first payment on account due for the 2020 to 2021 tax year
If you want to pay in full
You can pay your second payment on account bill in full any time between 31 July 2020 and 31 January 2021 using the online service.
If you want to pay in instalments
You need to contact HMRC if you already have overdue tax which you’re paying through a Time to Pay instalment arrangement and want to include your second payment on account in that arrangement.
If you do not have other overdue taxes, you can make your payment in instalments any time between now and 31 January 2021 by setting up a budget payment plan.
Payments made by Direct Debit
If you choose to defer and normally make your payments on account by Direct Debit, you should cancel your Direct Debit through your bank as soon as possible so that HMRC will not automatically collect any payment due. You can cancel online if you’re registered for online banking.
After the deferral ends
The usual interest, penalties and collection procedures will apply to missed payments.
How to get help
If you’re still struggling to pay your tax bill by 31 January 2021, or you’re experiencing other financial difficulties you can contact HMRC’s Time to Pay service.
Sources: GOV.UK