UPDATE – April 2020
Over the last couple of weeks the Government have introduced a lot of different help for businesses due to the Coronavirus (COVID-19) outbreak. Here, we detail the specific help relating to taxes that businesses pay.
On 20th March Boris Johnson said “We will support businesses by deferring Valued Added Tax (VAT) payments for 3 months”
The deferral will apply from 20 March 2020 until 30 June 2020.
All UK businesses are eligible.
How to access the scheme
This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. 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.
HMRC have also scaled up their Time to Pay offer to all firms who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities.
SO, WHAT DOES THIS MEAN IN SIMPLE TERMS?
PAYE, CIS and CORPORATION TAX – These payments need to be paid as normal, in full and on time.
VAT – Any VAT payments that would normally have been paid on 7th April, 7th May or 7th June can be deferred until 5th April 2021. The VAT will still need to be paid and is only being deferred.
This help is only for VAT payments that will become due on the above dates.
If you are already in arrears with VAT/PAYE/Corp Tax or are already in a payment plan for previous arrears then these need to be paid as normal although HMRC have said they will look at each business on a case by case basis.
However, we have the direct lines for a lot of senior staff at HMRC and we can speak to them on your behalf and we can guarantee that you will not have to pay HMRC anything at all (VAT, PAYE/CIS or Corp Tax) until at least the end of June and we can then re-assess the situation and if things are getting back to normal we can agree a lengthy time to pay plan for you.
For further information, or if you would like us to speak to HMRC on your behalf,
please ring our helpline on 0800 980 2662 or 0161 825 8094
This number is answered 24/7 and you will not be held in any queues.
You can also arrange a callback (either at the top of the page or in the green box on the bottom right)