Payment on Account Deferment
15th May, 2020
Due to the coronavirus outbreak, the UK government has announced that there is now no requirement to make a second payment on account for the year ended 5 April 2020, which was previously due for payment on 31 July 2020.
Normally taxpayers pay their tax in two installments – one on 31st January before the tax year finishes and the second on 31st July afterwards. The 31st July 2020 payment on account is deferred this year until 31st January 2021. This will be an automatic deferment so no action is required.
No Interest or Penalties
During the deferment period, no interest or penalties for late payment will be applied. This will bring a welcome cashflow advantage to many, however you will need to be aware that the 31st January 2021 payment total could be quite large as it will comprise three separate payments:
- The deferred 31st July 2020 payment on account
- The balancing payment for 2020
- The first payment on account for 2021
It is therefore particularly important to complete your 2020 tax return as soon as possible after 5th April 2020 so that you can plan for a larger payment coming due in January 2021.
Please do get in touch with a member of our team if have any questions in respect of the above.
Stay in touch with all the latest announcements on the Job Retention Scheme and other support provided by the Government by visiting our dedicated Covid-19 page here
Andrew founded Haggards Crowther with his brother in 2004 and took over as Managing Partner in May 2023. He has always been closely involved in client work, in particular providing high level strategic tax and structuring advice, business advice and supporting the technical and compliance teams.
As Managing Partner, he has focussed on growing the business and ensuring the firm upholds its core values of Quality of Service, Innovation, Collaboration and Integrity. These remain central to all that we do both internally and in serving our clients.
A Fulham resident for over 30 years Andrew is closely connected with the local business community and supporting many of them on their journeys. He is especially linked with fellow start-up entrepreneurs advising them on their growth strategies and optimal structures.
A passionate Fulham FC supporter, along with his two sons, Andrew rarely misses a game. He plays and coaches volleyball, something he has done since university in Edinburgh, and which offsets another of his passions: exploring the vast and diverse range of food that London’s restaurants have to offer.
He has a keen interest in many conservation projects especially in protecting endangered species of birds and actively supports the Mabula Project in South Africa. This charity supports the Southern Ground Hornbill, a charismatic species of cultural and ecological importance threatened by loss of habitat through the encroaching development of the savannah.
