Self Assessment Deferrals
The self-assessment payments due this coming July will be deferred (but not waived) until January 2021; all Income Tax payable in July 2020 is deferred until 31 January 2021.
VAT Payment Deferrals
The next quarter of VAT payments will be deferred (but not waived) until the end of June.
All VAT payments for the next quarter (end of May) are to be deferred but will need to be paid by end of the year.
VAT payments will be automatically deferred between 20 March 2020 and 30 June 2020 until 31 March 2021. All UK businesses are eligible, and no applications are required. We understand that HMRC will continue to expect businesses to submit VAT returns, although payment is not required. There is no mention so far about direct debit payments. However, the information available at the time of writing suggests that the payment runs are automatic and therefore, may be problematic.
Accordingly, TC Group advises that clients cancel direct debits with their bank to make sure no payment is taken. Contact us if you need help preparing your next VAT return.
Time to Pay Arrangements
Businesses and self-employed people with outstanding tax liabilities (excluding VAT), have the option of paying by instalments. TC Group has already helped many clients to obtain extended payment terms, if you haven’t already, please contact us.
Contact us today to discuss the points raised in this post or any other concerns you have as a business owner, about your personal finances, or, as an employer now on 0330 088 7111.