Taxes (Updated 15/03/2021)
1. VAT - deferral of payments
If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to:
defer the payment until a later date pay the VAT due as normal It does not cover VAT MOSS payments.
HMRC will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement.
You will still need to submit your VAT returns to HMRC on time.
HMRC will continue to process VAT reclaims and refunds as normal during this time.
If you choose to defer paying your VAT If you choose to defer your VAT payment as a result of coronavirus (COVID-19), you must pay the VAT due on or before 31 March 2021.
You do not need to tell HMRC that you are deferring your VAT payment.
Payments made by Direct Debit If you normally pay by Direct Debit you should contact your bank to cancel your Direct Debit as soon as you can, or you can cancel online if you’re registered for online banking.
After the VAT deferral ends VAT payments due following the end of the deferral period will have to be paid as normal. Further information about how to repay the VAT you’ve deferred will be available soon.
Cairns
comments:
Clients
should continue to prepare and file their VAT returns as normal, with
usual deadlines applicable. Cairns
will be available as usual for those clients we provide bookkeeping
services to.
2. Income tax - deferral of payment on account
For Income
Tax Self-Assessment, payments due on the 31 July 2020 may be deferred until
the 31 January 2021.
Eligibility
You are eligible if you are due to pay your second self-assessment payment on account on 31 July. You do not need to be self-employed to be eligible for the deferment.
The deferment is optional. If you are still able to pay your second payment on account on 31 July you should do so.
How to access the scheme
This is an automatic offer with no applications required. No penalties or interest for late payment will be charged if you defer payment until January 2021.
If you’re in temporary financial distress because of COVID-19 more help is available from HMRC’s Time to Pay scheme .
Cairns
comments:
Please note that this is a deferral and not a
cancellation. When planning ahead to January, keep this in mind.
3. Corporation tax
Cairns
comments:
Nothing further appears to be announced yet regarding upcoming
corporation tax liabilities. Please see below for HMRC's time to pay service. We are seeing that HMRC are being more lenient with payment extensions and plans.
4. Support for businesses paying tax: Time to Pay service All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.
These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
Eligibility You are eligible if your business:
pays tax to the UK government has outstanding tax liabilities How to access the scheme If you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC’s dedicated helpline: 0800 0159 559.
If you’re worried about a future payment, please call us nearer the time.