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 apply to pay the deferred VAT in instalments over 2021-22. Businesses will need to opt into the instalment arrangement and will need to apply to defer until 30 June 2021 at VAT Deferral.
2. Income Tax. For all Income Tax Self-Assessment, in order to provide additional support anyone with tax liabilities of up to £30,000, which are not more than 60 days overdue will be able to use HMRC’s self-service Time to Pay facility to secure a plan to pay over an additional 12 months at SA Pay in Instalments