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.

Additionally, if you are self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.

1. VAT Deferral. 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 until the end of the 2020-21 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.

PLEASE NOTE THAT IF YOU PAY BY DIRECT DEBIT AND WISH TO DEFER THE PAYMENT YOU WILL NEED TO CANCEL THE DIRECT DEBIT AT YOUR BANK AS HMRC SYSTEMS WILL AUTOMATICALLY ISSUE THE PAYMENT REQUEST.

2. Income Tax. For all Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021. This is an automatic offer with no applications required; however, the guidance states that you can make a payment if you are able to.

Please contact us now should you require support on 01509 267827 or accountants@essexabel.co.uk or contact your client advisor directly.

Updated: 31/03/2020