January and July are positive cash flow months for the UK Treasury as a number of significant taxes fall due for collection.

Next month, July 2021, taxpayers may need to settle the following liabilities:

• 1 July 2021, companies with corporation tax due for the year end date 30 September 2020, will need to pay corporation tax due by today.
• 19 July 2021, employers who have reported taxable benefits for their employees for 2020-21, will need to settle any Class 1A NICs – based on total benefits provided – today. If you pay your tax electronically the due date is 22 July 2021.
• 19 July 2021 – PAYE and NIC deductions due for month ended 5 July 2021. If you pay your tax electronically the due date is 22 July 2021.
• 19 July 2021 – CIS tax deducted for the month ended 5 July 2021 is payable by today. If you pay your tax electronically the due date is 22 July 2021.
• 31 July 2021 – individuals registered for self-assessment may have to pay any second instalment of tax due for 2020-21, by today.

For many businesses and individuals this may cause cash flow problems as many of us continue to be affected by COVID disruption. What to do?

If you cannot meet the forthcoming payment, contact HMRC before the tax due date. In this way you can request an extended period to pay taxes due.

For example, HMRC have set up a payment plan for self-assessment that you can apply for online or by calling their Self-Assessment Payment Support Service; the number is 0300 200 3822. There are conditions that apply, but the message from HMRC is clear. If you cannot settle taxes when they fall due, do your best to call HMRC before the due date and ask for time to pay.

Source: DocSafe