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:

consolidation loans for bad credit in UKBusiness
October 22, 2020

UK Business Debt Consolidation

Debt consolidation loans for business owners There are many different forms of business debt, including credit cards, overdrafts and loans. It stands to reason that the more debts a business…
Scammers Target Pensioners | Debt Consolidation LoansGuides
September 15, 2015

Scammers Target Pensioners

Scammers target pensioners The over-55s are being targeted by scammers who want to get their hands on people’s pensions now that the law has changed, Citizens Advice reported recently. In…
Cheques Explained - The Importance | Debt Consolidation LoansGuides
August 24, 2015

Cheques Explained – The Importance

Cheques Explained UK is unusual amongst European countries in that we still use a lot of cheques.  There was a plan to phase them out by the end of October…
Avoid the Costs of Unofficial Websites | Debt Consolidation LoansGuides
September 3, 2015

Avoid the Costs of Unofficial Websites

Costs of Unofficial Websites Avoid the costs of unofficial websites by making sure that you use only the official websites for things like getting a passport or EHIC card, paying…
Arrears on Secured Loans or Second Mortgages; What Happens Next? | Debt Consolidation LoansDebt
September 18, 2019

Arrears on Secured Loans or Second Mortgages; What Happens Next?

Arrears on Secured Loans A secured loan is when a debt is connected to an asset. The loans are most commonly to linked to the borrower's property, and so you…
Support for Tax Deadline | Debt Consolidation LoansDebt SolutionsGuides
January 23, 2021

Support for Tax Deadline

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,…

Leave a Reply

nineteen − fourteen =