After the VAT deferral for VAT periods up to 30 June 2020, there were no further specific payment deferrals available. The deferred liability must be paid by 31 March 2021.
We recommend clients in financial difficulty contact HMRC directly to discuss possible payment deferrals.
Self Assessment customers can apply online for additional support to help spread the cost of their tax bill into monthly payments from 1 October 2020 without the need to call HM Revenue and Customs (HMRC).
The online payment plan service can already be used to set up instalment arrangements for paying tax liabilities up to £10,000. From 1 October 2020, HMRC has increased the threshold to £30,000 for Self Assessment customers, to help ease any potential financial burden they may be experiencing due to the coronavirus pandemic.
The increased self-serve Time to Pay limit of £30,000 follows the Chancellor of the Exchequer’s announcement on 24 September to increase support for businesses and individuals through the uncertain months ahead.