Self-employed workers are being reminded that the second payment on account for 2020/21 is due by 31st July 2021.
Although self-assessment payments on account for July 2020 were automatically deferred until January 2021, this is not the case for the second payments on account for 2020/21, which are still due at the end of the month.
The Low Income Tax Reform Group (LITRG) is urging people not to ignore the tax payment, and if you are struggling to pay, contact HMRC as soon as possible to discuss the possibility of arranging instalments.
HMRC has said that they will have a sympathetic approach to such requests due to the current economic situation.
Victoria Todd, Head of LITRG, commented, “If you have already submitted your 2020/21 tax return, then your second payment on account amount will be recalculated by HMRC based on the information on the tax return and so the amount due on 31st July should be correct. Therefore, if you have not yet filed your tax return for 2020/21 you should consider doing so before 31st July.”