Deferring VAT and Income Tax payments

The Chancellor has announced further changes in respect of the deferral of VAT and Income Tax liabilities as follows:

1. VAT Deferral Scheme. For businesses who deferred the payment of their VAT liabilities for payments that were due from 20 March 2020 to 30 June 2020, they will able to choose between paying the deferred VAT in full by the end of March 2021 or paying in 11 equal instalments over 2021-22. Businesses will need to opt into the instalment arrangement and HMRC will put an opt-in process in place in early 2021.

2. Income Tax. For all Income Tax Self-Assessment, there was the option to defer payments due on the 31 July 2020 until the 31 January 2021. In order to provide additional support anyone with tax liabilities of up to £30,000 due in January 2021 will be able to use HMRC’s self-service Time to Pay facility to secure a plan to pay over an additional 12 months.

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

Updated: 25/09/2020