SELF-EMPLOYED workers will get more time to pay their tax bill under new plans announced in the Winter Economy Plan.
Chancellor Rishi Sunak said the millions of people who pay tax through self-assessment will be able to extend their outstanding tax bill over 12 months from January.
People who work for themselves have to file their tax return with HMRC and pay their tax bill by 31 January each year.
There is also a second deadline for payment for some people in July, known as payment on account, which has already been extended to 31 January 2021 because of the pandemic.
Now, these payments can be deferred further, and won’t need to be paid until January 2022.
And Mr Sunak announced today that those with a tax bill this coming January can also defer – payment will not be due until January 2022.
The government says 11million people who pay tax through self-assessment will be able to benefit from the extension.
Mr Sunak announced the further deadline extension among a wave of measures designed to help workers and businesses in his plan for the economy this winter as coronavirus cases rise.
The Self Employment Income Support Scheme Grant (SEISS) will also be extended, Mr Sunak announced in his plans for the economy this winter.
SEISS provides a cash grants to self-employed people who have lost income because of covid.
The Chancellor has today given struggling businesses more time to pay back bounce back loans with pay as you grow.
The government will cover up to a third of workers’ wages if their hours have been reduced due to the coronavirus crisis.
The Chancellor has extended the coronavirus business loan support scheme today to get them through the winter.