One of the first coronavirus tax announcements was a deferral of the payment on account (POA) of income tax due on 31 July 2020. This tax payment was delayed to coincide with the final payment for 2019/20 due by 31 January 2021.
Now the Chancellor is giving individual taxpayers even longer to pay all of the taxes due by 31 January 2021.
Taxpayers now have the option to spread the payment that was due in July 2020 and the payment that will fall due in January 2021 over a 12 month period up to January 2022.
Unlike the deferral in place on 31 July 2020, the taxpayer will have to apply for time to pay to spread the tax due over 12 monthly instalments to January 2022. However, where the total tax due doesn’t exceed £30,000 the application for time to pay will be agreed automatically when the taxpayer applies using an online form.
If the tax due exceeds £30,000 or the taxpayer needs longer to pay, the telephone service will still be available to agree a bespoke payment plan.