So the lockdown continues…………………….
Our clients in Teignmouth and Penzance, and the surrounding areas, will know from previous information we have provided, that the government have announced that self-assessment tax payers can defer the payments on account normally due by the 31st July 2020 until the 31st January 2021. If you are due to make a payment in July 2020 and wish to defer the payment until January 2021 there is no action that needs to be taken other than to withhold the payment.
However, a word of caution, if the payment for July 2020 is deferred until January 2021 the tax due in January 2021 will be the July payment due from 2020, plus any tax outstanding from the tax return for 2019/2020 plus the first payment on account for 2020/2021, so the potential is there for you having a large payment to make in January 2021.
If you wish to know what amounts will be due in January 2021, and you are already a client, then I would urge you to let me have your paperwork for the tax year ended 5th April 2020 as soon as you can in order that I can complete your accounts and prepare the tax calculations. You will then be in a position to know what your tax liability is going to be and make provision to cover the liability when it becomes due, or if necessary seek help from HMRC with time to pay.
Those clients who have already provided me with the information I need to complete your accounts and tax returns will be receiving the information you will need for any January 2021 payments shortly.
If you are not already a client but would like to find out more please contact us and we will be happy to do what we can to help.Share