UK taxpayers filing a tax return may need to pay a self-assessment tax payment on account by 31 July 2021. We will be reminding our clients by text (if we have a mobile number on file) to check whether they have a payment to make this month. This payment is a payment in advance of your 2020/21 tax liability.
The amount of this payment will have been quantified when your self-assessment tax return was filed for 2019/20 and is 50% of any 2019/20 liability over £1,000. If your liability was under £1,000 for 2019/20 you will not have a payment on account to make.
If you are concerned you will not have sufficient funds to meet these liabilities on 31 July 2021, it is possible to negotiate under HMRC’s time to pay scheme. On their website HMRC offer the following advice:
If you cannot pay your Self-Assessment tax bill
You can set up a payment plan to spread the cost of your latest Self-Assessment bill if:
- you owe £30,000 or less
- you do not have any other payment plans or debts with HMRC
- your tax returns are up to date
- it’s less than 60 days after the payment deadline
- interest will be charged on any payment plans
You do not need to contact HMRC if you set up a payment plan online. You can do this by logging in to your HMRC self-assessment online account. Call the Self-Assessment Helpline if you are not eligible for a payment plan or cannot use the online service.
Self-Assessment Payment Helpline
Telephone: 0300 200 3822 Monday to Friday, 8am to 6pm
Call charges will be made.
Interest and penalties will be charged on any late tax payments.