VAT payments will be deferred for 3 months, from 30th March 2020 until 30th June 2020. The business will have until the end of March 2021 to clear any liabilities due from this deferral period. Please note you will need to cancel your direct debit with HMRC.
VAT refunds will continue to be paid as normal.
There is no indication about penalties for non-submission of VAT returns as yet. Where it was not possible to submit a VAT return on time, due to the Covid-19 situation, we would hope that HMRC would uphold appeals on penalties imposed.
Self Assessment – July Payment on Account – Deferral
For clients who are self employed (as a sole trader), if you have a payment on account due by 31st July 2020, this will be deferred until 31st January 2021.
At this time, this deferral appears to be for self-employed taxpayers only. If you have a tax liability arising due to salary and dividend income for example, your payment would still be due. More information is likely to be provided on this between now and July.
Time to Pay
Any business that pays tax to the UK government and has outstanding tax liabilities will be able to apply for their case to be reviewed by HMRC with a view to arranging a bespoke time to pay agreement. This applies to all businesses including the self-employed. HMRC has set up a dedicated helpline: 0800 0159 559.