If your financial situation is difficult right now and you need more time to pay any tax due, you can agree an extension with HMRC.
2020 may have been a long and tedious year so far, and with Christmas still an unknown there isn’t much to look forward to in the final month of the year.
But there is one bright spot, and surprisingly it comes in the form of tax return season. Those taxpayers who may have difficulty paying the tax due under self-assessment on 31 January 2021 can agree more time to pay with HMRC provided the amount outstanding is no more than £30,000.
Tax due date extended by a year
The government have already agreed that amounts due under self-assessment on 31 July 2020 could be deferred until 31 January 2021, but this latest announcement generally allows a further 12 months to pay.
A key condition is that the taxpayer does not have any outstanding tax returns, no other tax debts, or other HMRC payment plans set up. The payment plan needs to be set up no later than 60 days after the due date of a debt. Interest will accrue on the tax owed based on the outstanding balance at 1 February 2021.
If you require any advice or assistance with your tax liabilities and any extensions, please get in touch. Our expert tax advisors would be more than happy to help.