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Defer your self-assessment payment to HMRC till 2021

Self-employed gas engineers whose work has been affected by the COVID-19 outbreak can delay their self-assessment tax payment on account to HMRC until 31 January 2021.

The next self-assessment payment for the 2019-20 tax year was due by 31 July 2020, but the government has said anyone who will find making payment difficult due to the impact of coronavirus can delay it for six months.

HMRC will not charge interest or penalties on any amount of the deferred payment on account, as long as it is paid on or before 31 January 2021.

Those who choose to defer payment do not need to tell HMRC that they are deferring their payment, but still need to submit their self-assessment tax return to HMRC on time.

Choosing to defer payment will not prevent anyone from claiming other government support to which they are entitled.

Anyone who is registered for self-assessment in the UK and wishes to make the payment as normal can do so. Other payments that may have to be made by this date include any balancing payment due for the 2019-20 tax year, or any first payment on account due for the 2020-21 tax year.

Self-employed gas engineers can check the payments they may need to make to HMRC by signing into their online account with HMRC at https://www.gov.uk/understand-self-assessment-bill/payments-on-account

Any engineer who already has overdue tax that is being paid through a Time to Pay instalment arrangement will need to contact HMRC if they want to include their second payment on account in that arrangement.

Those who currently make payment on account by Direct Debit and wish to defer must cancel that Direct Debit through their bank as soon as possible so that the payment due is not automatically collected.

Once the six-month deferral ends, the usual HMRC interest, penalties and collection procedures will apply to missed payments.

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

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