As part of its measures to reduce the economic impact of the Coronavirus crisis, the Government has announced deferrals to a number of HM Revenue & Customs (HMRC) and Companies House deadlines to ease the strain on businesses and self-employed individuals.
VAT payments have been deferred by three months from 20 March 2020 until 30 June 2020. During this period, businesses will not need to make VAT payments to HM Revenue & Customs (HMRC). However, businesses should continue to report VAT as usual.
Businesses will have until the end of the 2021 tax year to pay any liabilities that have accumulated during this period. The deferral is automatic and businesses do not need to apply to be able to benefit from it.
However, you must cancel the direct debit manually with your bank immediately to make use of this deferment.
VAT refunds and reclaims will be paid by the Government as normal.
Income Tax Self-Assessment payments due on 31 July 2020 will be deferred until 31 January 2021.
HM Revenue & Customs (HMRC) has confirmed that all self-assessment taxpayers can benefit from an extension to the July payment date and not just the self-employed.
HMRC updated guidance on the July payments on account deferral to make it clear that it applies to all self-assessment tax payers, which means that anyone due to submit a self-assessment income tax payment on July 31 now has until January 31, 2021 – including those with rental and investment income.
This deferment is an automatic offer and it is not necessary to apply to benefit from it, but it is intended for those experiencing hardship as a result of the Coronavirus pandemic.
HMRC is urging that anyone who is still able to pay their second self-assessment payment by the July deadline should still do so if they can.
No penalties or interest for late payment will be charged during the deferral period.
Time to Pay (TTP) Arrangements
HMRC is making TTP arrangements available to any business that can show that all other avenues for financing have been exhausted.
Companies House Filing
Businesses affected by the COVID-19 pandemic can apply to Companies House to request an extension to file their accounts, reports and confirmation statements.
Companies House is offering a maximum extension of three months for struggling businesses, but they must meet stringent conditions, including a rule that an appeal to extend must be lodged before a company’s current filing deadline.
Appeals will be treated on a case-by-case basis and the process will mirror the existing criteria based on cases for unforeseen poor health.
Companies House has made it clear that any company accounts filed late will still incur an automatic penalty.
Here to Help
If you require assistance with the deferral of tax or Time to Pay arrangements, please speak to our team.