Supporting Businesses Through VAT Deferrals

The government have therefore recently announced further measures to assist businesses through deferral of their taxes.

What Are the Measures?

The government have agreed to support businesses by deferring Valued Added Tax (VAT) payments for 3 months, from 20 March 2020 until 30 June 2020.

In addition to this, those who are self-employed will benefit from a tax deferral as well, and any income tax payments due in July 2020, will be deferred to January 2021.

Who Can Benefit?

Any business or any self-employed person can benefit from these deferrals.

How Do You Access the Scheme?

This scheme is automatic, and you don't need to apply. Businesses or self-employed people don't need to make a VAT payment during this period, and there will be no penalties for late payment. Business taxpayers will be given until the end of the 2020-2021 tax year to pay what has accumulated during the deferral period.

If you are an individual, you should cancel your direct debit before it is due, to avoid HMRC automatically collecting receipt of your VAT return.

Time to Pay Offer

HMRC have also increased their Time to Pay offer to all businesses and individuals behind on their tax payments, or in temporary financial distress as a result of COVID-19.

This is decided on a case-by-case basis, and you will need to discuss your individual business or personal circumstances with HMRC. HMRC have set up a helpline specifically for these circumstances, which can be accessed by calling 0800 0159 559.

If you are concerned that you might miss your tax payments, or have any specialist tax questions arising from the Coronavirus situation, please contact a member of our Tax team or complete the below form.