Skip to main content

Support for Tax Deadline

A quarter of the UK’s self-employed are making plans to delay their 2019-20 tax bill, due financial strain caused by the coronavirus pandemic and associated restrictions, perhaps needing support for tax deadline, reveals the findings of a recent survey of 4,000 UK taxpayers for Which?

31st January is the traditional deadline for submitting the previous year’s tax return, with payment for 2019-2020 also due at the same time. One in four of the UK’s self-employed, who complete tax returns, have already decided to delay the payment that’s due in just under two weeks’ time. This in in addition to almost a fifth (22%) who had taken the government up on their offer to defer the tax payment due by the July 2020 payment deadline, according to a poll  by Which? The survey also indicates that 19 million hours will be spent by UK taxpayers completing their tax returns by 31 January.

Not all of those who were due to pay tax by 31 January had come to a decision, with 16% either not sure what they would do or simply had not considered it yet. Over 40% of people (42%) have said that they have already opted to defer their July payment because of financial hardship.

The government offers a Time To Pay option that allows taxpayers to settle their tax bill across the year, by monthly payments. While it enables a more gradual approach to settlement, interest will be charged on your outstanding balance.

Time To Pay is in operation at all times, regardless of the coronavirus, and is not the same as the government’s option to permit a deferral on July 2020’s payment-on-account deadline. This is part of the raft of financial support announced as a response to the coronavirus which allowed self-employed taxpayers to defer July’s 2020 payment until 31 January 2021.

Why you should pay your tax on time

Support for Tax Deadline | Debt Consolidation Loans

Simply not paying your tax bill by the 31 January 2021 can result in fines. Taxpayers would need to have contacted HMRC and have another option in place – a Time To Pay agreement or another plan agreed with HMRC – in order to miss the deadline without being subject to charges. Being late will mean that you will be charged 2.6% interest from the payment due date, with a charge of 5% of the outstanding tax bill added after 30 days and another 5% charge added on 31 July 2021 alongside an additional 5% fee added to the total after a year of overdue payment.

Can’t pay tax on time? What you need to do

The government has schemes in place that can help you if you are facing financial difficulty and cannot pay your tax bill on time. You may be able to arrange an agreement with HMRC under their Time To Pay scheme, but there are certain restrictions on who can have Time To Pay:

  • You must owe less than £30,000 in tax
  • You must look to put the arrangement in place less than 60 days after the payment deadline
  • You have completed your tax returns and they are up to date
  • You do not currently have debts with HMRC
  • You do not have any other payment plans or agreements with HMRC

If you do owe more than £30,000 or you already know that you will need more than the 12 months permitted by Time to Pay, you might still be able to come to an agreement to pay in instalments. The best – and most important – thing to do if you are unsure about how or when you will be able to pay your tax bill, or you need help on how to delay paying your tax bill, call the HMRC Payment Support Service on 0300 200 3835.

We offer Debt Consolidation Loans for homeowners.

Our team is on hand to help with number of questions you may have.

If you are struggling with debt, please visit Money Advice Service for help and advice.

We are a broker, not a lender.

Visitors also read:

Digital Trappings to Avoid When Struggling with DebtDebtGuides
March 7, 2021

Digital Trappings to Avoid When Struggling with Debt

Digital Trappings to Avoid When Struggling with Debt Ten or twenty years ago, debt would be a very private affair while temptation to spend would be easy to avoid. Now,…
Citizens Advice Bureau Explained  | Debt Consolidation LoansGuides
December 10, 2019

Citizens Advice Bureau Explained 

Citizens Advice Bureau Citizens Advice Bureau - also known as the (CAB), is a UK-registered charity which provides UK residents free, impartial advice. This helps you understand exactly what your…
Seven Financial Facts About Yourself You Should Know | Debt Consolidation LoansGuides
March 3, 2021

Seven Financial Facts About Yourself You Should Know

Seven Financial Facts About Yourself You Should Know Do you know all the facts about your finances? Could you reel off numbers if prompted? In personal finance ignorance is expensive…
Debt Consolidation Loan Calculator | Debt Consolidation LoansDebt Consolidation
December 7, 2019

Debt Consolidation Loan Calculator

Debt Consolidation Loan Calculator  In order to quickly establish if you are a potential applicant for a debt consolidation loan, then it’s worth having a look at a very handy…
5 Signs You Need to Stop or Slow Down in Using Your Credit Card | Debt Consolidation LoansCredit cardsGuides
February 6, 2019

5 Signs You Need to Stop or Slow Down in Using Your Credit Card

Slow Down in Using Your Credit Card There’s nothing wrong with having a credit card. For most of us, it represents a way to shop smartly - providing the balance…
how to get out of debt in the ukDebt Consolidation
May 31, 2021

Questions To Ask Before You Apply For Debt Consolidation Loans

Staying on top of debts can be difficult and may leave many of us looking to apply for debt consolidation loans. But like with most things in life, we need…

Leave a Reply

six + 1 =