HMRC have offered a tax deferment scheme as detailed below to help businesses and individuals throughout the COVID-19 outbreak.
The government will support businesses by deferring Valued Added Tax (VAT) payments for three months. If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.
Find out more about the steps you need to take to defer your payments in our video:
However, it’s important to bear in mind that this is simply a deferral – not a tax break – and therefore your tax will still need to be paid during the 2020/2021 financial year. This means cashflow planning for the 2020/2021 year will be paramount, not just to get through this crisis, but also to ensure future liabilities can be met.
Get in touch so we can help you by using our cloud-based tools to support your business. The Float cashflow app is free until 31 May 2020 so we can get started immediately!
How to access the scheme
This is an automatic offer with no applications required. Businesses will not need to make a VAT payment from 20 March 2020 until 30 June 2020. Taxpayers will be given until the end of the 2020 to 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.
For Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021.
No penalties or interest for late payment will be charged in the deferral period.
HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of COVID-19 and have outstanding tax liabilities.
You can read further information on this on the UK Government website.
All the latest information
We’ve put together articles on a wide number of items announced as part of the Chancellor’s support package – visit our Coronavirus hub to get all the latest details.
How can we help?
While there will be plenty of disruption over the next few weeks, we’re here to help! To arrange a call, email Julie on email@example.com or complete our enquiry form.