VAT

VAT payments are being deferred for 3 months from 20 March 2020 until 30 June 2020. All UK Businesses are eligible. This is an automatic offer with no application required. You do still need to file your VAT return but you will not need to make a VAT payment during this period. You will be given until the end of the 2020/2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.

If you normally pay by direct debit you should cancel the direct debit with your bank if you are unable to pay. You need to do this ASAP so that HMRC do not attempt to automatically collect on receipt of your VAT return. The direct debit can easily be reinstated when normality resumes.

Income Tax

For Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021. Again, this is an automatic offer with no applications required. No penalties or interest for late payment will be charged in the deferral period. If you pay by direct debit you must cancel with your bank.

Just to be clear, these are deferrals and not cancellations. You will be required to pay at a later date.

If you are in financial distress and have outstanding tax liabilities (including not being able to pay PAYE), you may be eligible to receive support with your tax affairs through HMRC’s Time To Pay service. Please call HMRC’s dedicated helpline on 0800 0159 559.

Finally, amidst all the worry about your business we hope that you are well. Be sure to take care of yourself and your loved ones. If there is anything we can do to help your business please let us know.