Help with Tax Payments
VAT
This is what the Government has to say.
We will support businesses by deferring Valued Added Tax (VAT) payments for 3 months.
The deferral will apply from 20 March 2020 until 30 June 2020.
Eligibility
All UK businesses are eligible.
How to access the scheme
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 31 March 2021 to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.
Businesses who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay, and in sufficient time so that HMRC do not attempt to automatically collect on receipt of their VAT return. Direct debits should be reinstated for payments after the deferral period.
Income Tax
This is what the Government has to say.
For Income Tax Self-Assessment, payments due on the 31 July 2020 may be deferred until 31 January 2021.
Eligibility
You are eligible if you are due to pay your second self-assessment payment on account on 31 July. You do not need to be self-employed to be eligible for the deferment.
The deferment is optional. If you are still able to pay your second payment on account on 31 July you should do so.
How to access the scheme
This is an automatic offer with no applications required.
No penalties or interest for late payment will be charged in the deferral period.
All Taxes
This is what the Government has to say.
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.
These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
Eligibility
You are eligible if your business:
- pays tax to the UK government
- has outstanding tax liabilities
How to access the scheme
If you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC’s dedicated helpline: 0800 024 1222.
If you’re worried about a future payment, please call us nearer the time.
If you contact HMRC you’ll need to know:
- your reference number (for example, your 10-digit Unique Taxpayer Reference or VAT reference number)
- the amount of the tax bill you’re finding it difficult to pay and the reasons why
- what you’ve done to try to get the money to pay the bill
- how much you can pay immediately and how long you may need to pay the rest
- your bank account details
HMRC will ask you about:
- your income and expenditure
- your assets, like savings and investments
- what you’re doing to get your tax payments back in order
HMRC will decide whether you should be able to pay immediately. If you cannot, they’ll decide whether you’ll be able to get your payments back on track with more time. You’ll be asked more in-depth questions if you’ve been given more time to pay before. In more complex cases HMRC may ask for evidence before they make a decision.
HMRC’s detailed guidance on Time to Pay is here:
https://www.gov.uk/difficulties-paying-hmrc
Additional Help for Business
The Government’s full Covid 19 Support for Business guidance is here:
