Deferred payments are interest-free if paid by 31 January

Individuals and businesses can automatically defer their second 2019-20 self-assessment payment on account until 31 January 2021 HMRC is reminding taxpayers.

Taxpayers do not need to contact HMRC to defer their payment; they opt in simply by not paying their tax bill due by 31 July 2020. If no payment is received HMRC will automatically update its systems to show payment has been deferred and no interest or penalties will be incurred as long as it is paid in full by 31 January 2021. The only action taxpayers may need to take is to cancel their direct debit if they have one set up.

A projected estimate based on 2019-20 self-assessment receipts suggests the July payment deferral will provide up to a £11.8bn cash flow boost to taxpayers. About 2.7 million taxpayers are eligible of whom 1.3 million are self-employed individuals.

HMRC adds that the deferred...