Income tax
Taxpayers who are due to make a second payment on account for the 2019/20 tax year, by 31 July 2020, may defer the payment by up to 6 months. Where the deferment applies, no interest or penalties will arise as long as the payment reaches HMRC by 31 January 2021. During the deferral period an HMRC budget payment plan can be set up to help pay the deferred payment on account, when it becomes due on 31 January 2021.
Where the July 2020 payment is deferred, careful budgeting will be required to ensure funds are in place to meet the total tax bill payable by 31 January 2021.
Whilst the deferment is automatic and no application is required, HMRC have stated that where a taxpayer is able to make the payment by 31 July 2020, they should continue to do so.
Inheritance tax
The Government has proposed that NHS staff and frontline workers who have died from coronavirus should be exempted from inheritance tax, the exemption will require claiming – further information is awaited on this issue.
If you have any questions please speak to your usual BHP contact or a member of our Healthcare team.
