The second self-assessment payment on account for the 2019/20 tax year which would normally be payable by 31 July 2020 is deferred to 31 January 2021. In effect, this means that the 2019/20 balancing payment due by 31 January 2021 will be the total income tax, capital gains tax, Class 2 and Class 4 NIC due for the tax year less the first payment on account which you paid in January 2020. No interest will be applied for the period between 31 July 2020 and 31 January 2021.
Initially, the government guidance suggested that this deferral was available to the self-employed only. However, the HMRC Press Office has confirmed that this deferral applies to all those required to make payments on account of tax in July. In other words, if the tax you pay through self-assessment is tax due on rental income or investment income, you will be able to defer payment if you wish.
The deferment applies automatically without the need to make an application.
Please contact us to see whether the impact of coronavirus may reduce your 2019/20 taxable income such that a claim can be made to reduce both of the 2019/20 payments on account. This would then generate a partial refund of the first payment on account which you paid in January 2020.