This payment would normally be due on 31st July 2020.
HMRC stated some time ago that this payment could be deferred until 31st January 2021 as part of their aid package in response to Covid-19.
Statements of Account are now being issued which show these payments due to be paid by 31st January 2021.
This is causing some confusion as taxpayers were expecting to see these payments due by 31st July 2020 and an option to defer payment until 31st January 2021.
You therefore have the choice. You can pay now as you would normally, or you can take advantage of the HMRC concession and pay in January 2021.
If you decide to defer payment, please remember that in January 2021 you will need to make the deferred payment, any balancing payment and a first payment on account for 2020/2021.
Your tax bill for 2018/2019 was £5,000
Second payment on account normally due 31st July 2020 £2,500 – deferred
Tax return completed – bill for 2019/2020 £6,000
Payable on the 31st January 2021:
2nd payment on account 2019/2020 £2,500
Balancing payment 2019/2020 (£6,000-£2,500-£2,500) £1,000
1st payment on account 2020/2021 £3,000