Deferring VAT and Income Tax payments

Government has announced that HMRC will allow you to defer Value Added Tax (VAT) payments for 3 months. The deferral period will apply from 20 March 2020 until 30 June 2020. More information can be found here in this link

All UK businesses registered for VAT are eligible. 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 up to 12 months to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the Government as normal.

More information can be found here in this link

The returns should be submitted as normal but don’t forget cancel your direct debit with HMRC if you have one!!

For Income Tax Self-Assessment payments due on the 31 July 2020 will be deferred until the 31 January 2021. If you are self-employed you are eligible. This is an automatic offer with no applications required. It is unclear, at the moment, if this will extend to all on account payments due in July.

More information can be found here in this link

NUNN HAYWARD’S PLANNING ADVICE:

Both of these support measures are welcomed as they offer the self-employed and VAT registered businesses fairly immediate cash-flow relief in the next few months but PLEASE NOTE HMRC are not cancelling your VAT and self-assessment tax payments, both are being deferred to a later date. You must ensure that you make allowance for this so that you can meet the payments when they fall due at the later date.

The information that we have provided is for general purposes only and therefore does not constitute professional advice. Appropriate professional advice should be sought for individual circumstances before any further action is taken.