Contact Us

Where you have submitted your 2019/20 tax return but have not yet paid the liability which was due on 31st January 2021, you are able to request time to pay HMRC by instalments. 

Where you have Class 2 National Insurance Contributions (NIC) to pay and have arranged time to pay, HMRC has advised you may face some issues in respect of certain contributory state benefits. 

A problem may arise because HMRC will allocate your first instalments against your earliest tax liabilities. For example, if you deferred tax payments in July 2020 due to coronavirus or have other overdue tax liabilities, these liabilities will be settled first.  This could mean the January 2021 Class 2 NIC liability is settled later and this may affect certain state benefit claims. 

HMRC has advised that if you contact them, they can check to see if they can reallocate monies you have paid to cover the Class 2 NIC. HMRC will not automatically do this for you. You may incur a small amount of interest if HMRC do this, but your contributory benefit claim should be protected. 

Date published 24 Feb 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 80,684 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free, no obligation consultation

0800 0523 555

Or contact us