Reminder that second payment on account is due 31st July

(2 minutes to read)

LITRG: ‘If you cannot pay the amount due, contact HMRC as soon as possible to discuss the possibility of paying the amount due in instalments. HMRC have indicated they will continue to treat all such requests sympathetically in view of the current economic situation’.

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.”

Thinking of appointing Dolan Accountancy?

Give us a call on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

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Todd added, “If you cannot file the 2020/21 tax return in the next few days but think your tax bill for 2020/21 will be less than that for 2019/20, your payments on account may be higher than they need to be. In this case, you may be able to make a claim to reduce the level of the second payment on account for 2020/21. We explain how to do this on our website.

“It is also important to factor any coronavirus support payments that are taxable in 2020/21, such as the first three payments under the Self-Employment Income Support Scheme, into calculations when working out whether you can reduce your 2020/21 payments on account.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

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Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of Contractor Umbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.
  • Same day payments- We offer same day payments as standard providing funds are received into our account by 9am, for no additional fee.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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