Taxpayers need to think now about their likely cashflow this year so that they can warn HMRC if they need time to pay their tax bills, say leading tax and advisory firm Blick Rothenberg.
Fiona Fernie, a Tax Dispute Resolution partner at the firm said, “HMRC have said that July tax payments for anyone who pays by self-assessment will be deferred until January 2021, but if taxpayers have the money, I would urge them to pay now so that they are not faced with a double bill.
“Many will still be worried that even if they pay the July instalment, they may not be able to pay what they owe in January – particularly in view of the fact that for those who have continued to operate their businesses (albeit many at a reduced level) will also have to pay the first instalment of their 2020/21 tax bill in January 2021.
“If they alert HMRC to the problem, then they should be able to obtain a time to pay (TTP) arrangement. HMRC will be sympathetic to what has happened to people’s finances but the earlier they are told the better it will be for both parties”.