The second self-assessment (SA) payment on account (POA) for 2020-21 is due on 31 July 2020, however, deferral is an option for those impacted by coronavirus.

The policy was originally aimed at the self-employed but has now been extended to cover all self-assessment taxpayers and HMRC’s guidance on deferring the second SA payment on account, was updated on 8 July 2020.

Whilst the policy has been extended to all taxpayers, HMRC’s guidance states that deferral is available to any SA taxpayer who is: “finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus”.

This introduces a condition of your ability to pay having been affected by the pandemic.

You may have been surprised to receive SA statements of account which show the due date for the second payment on account as 31 January 2021. This is because HMRC has had to change the due date in its system to ensure that interest would not be charged where payment is deferred until 31 January 2021.

However, this means that the statements give the incorrect impression that there is no condition to be met which is not the case.

It may be that in practice HMRC will not have the resources to check compliance with the condition that the taxpayer must have difficulty paying, but the condition does remain in place.

In many cases what may be the most important consideration is that you do not accumulate debt and find yourself unable to pay a much larger than usual SA bill in January 2021.

Our view is that where possible you should make the payment on account in July to avoid possible payment problems in January 2021.

Another solution might be to contact HMRC to arrange a budget payment plan.

We recommend that any of our clients experiencing cashflow problems or who are uncertain how to proceed should get in touch with us straight away for advice on your individual circums