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CORONAVIRUS – Deferral of VAT and Income Tax payments

In order to support businesses HMRC have announced that they will defer VAT payments for 3 months, the deferral will apply from 20 March until 30 June 2020. You will have until 31 March 2021 to pay any VAT deferred as a result of this announcement.

You do not need to inform HMRC if you wish to defer, but should lodge all VAT returns due as normal and simply not pay any VAT due. If you normally settle your VAT liabilities by direct debit then please note that you should cancel this with your bank to avoid this being paid.

For the self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred until January 2021.

All businesses in the UK are eligible irrespective of size. No applications are required and businesses will not need to make a VAT payment during this period. Liabilities accruing over this period will not need to be paid until the end of 2020/21 tax year.
Any VAT refunds due in this period will be repaid by HMRC as normal.

There will be no penalties or interest for late payment charged in the deferral period.

In addition to the above, HMRC have also scaled up their Time to Pay offer to all businesses and individuals who are in financial difficulty due to Covid-19. 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 require our assistance with making a Time to Pay application then please contact us by email on admin@four-m.co.uk

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