Last year taxpayers could automatically defer their second payment on account towards the 2019/2020 tax liability that fell due on 31 July 2020 to 31 January 2021. Please note that the second payment on account for the 2021 tax year is not deferred and is payable by 31 July 2021.
Self-assessment tax payers are obliged to make payments on account towards their tax liability where their tax liability in the previous tax year exceeded £1000 or less than 80% of their tax liability was collected at source. In the first instance, the payments on account are based on the tax liability for the previous tax year. For example, if your tax liability for the year to 5 April 2020 was £2,000, HMRC would expect you to make two payments on account of £1000 each towards your tax liability for the year to 5 April 2021 by 31 January 2021 and 31 July 2021. Please contact us if you anticipate that your tax liability for the year to 5 April 2021 will be lower as we can review the position and it may be possible to apply to HMRC to reduce your payments on account before the 31 July payment is due.
Details of how much to pay HMRC can be found in the cover letter for your 2020 tax return. Please do not delay if you have not received a payslip as this may result in interest and penalties. You can pay online using your debit card using the following link https://www.tax.service.gov.uk/pay-online/self-assessment.
Alternatively you can pay HMRC by bank transfer and we can confirm that the bank details are as follows:
Account Name: HMRC Cumbernauld
Account Number: 12001039
When using both electronic methods above you will be asked for a reference number which is contained in our letter followed by the letter ‘K’. Please do not hesitate to contact us if you have any queries.
|Click here to see Hazel Burt's profile and contact details.|