Covid-19 Special Edition; 2020 Provisional Tax
We can re-estimate your 2020 provisional tax based on the payments already made and no further action will be taken until the 2020 tax return is completed.
If you chose not to pay you may be up for use of money interest charges if your 2020 income tax is more than provisional already paid. This would be payable by 7 April 2021. Interest rate is currently at 8.35%.
The other option is to use the temporary loss carry back scheme:
o Option to forecast 2021 losses and offset against 2020 income.
o You will need to do a cashflow forecast to estimate potential 2021 losses.
o We can then re-estimate your 2020 provisional tax based on the loss forecast and potentially get any 2020 provisional tax already paid refunded to you.
o If the loss estimation is incorrect or overstated then interest charges will apply and any loss claimed will have to be added back into the 2021 income.