Coronavirus – Support for businesses and individuals paying taxes
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.
You are eligible if your business pays tax to the UK government and has outstanding tax liabilities.
Deferring VAT payments
VAT registered businesses can defer any VAT payments due between 20 March 2020 and 30 June 2020. There is no application process required to defer the relevant payment. However, businesses can still choose to pay any VAT due as normal.
It is important to note that this is only a deferral and whilst no interest or penalties will be due on deferred payments, the full amount of VAT due will still need to be paid. If you choose to defer your VAT payment as a result of Coronavirus then you must pay the VAT due to HMRC on or before 31 March 2021.
If you are planning to make use of the deferral offer, and you pay by direct debit, then you should cancel your direct debit. You can cancel your direct debit online using online banking or contact your bank if necessary. Please make sure that you do this as soon as possible to ensure that HMRC do not automatically collect the VAT due. You should also keep a note to re-establish the direct debit when your next VAT payment is due (if no further deferrals are announced).
HMRC has said that they will continue to process VAT reclaims and refunds as normal during this time.
Deferring Income Tax payments
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. If you do not wish to take advantage of this deferral you can continue to pay as normal.
Tax payment helpline
The tax payment helpline fields questions and concerns from any business or self-employed individual worried about paying their tax due to Coronavirus disruption and offers practical help and advice. The phone number for HMRC’s COVID-19 helpline is 0800 024 1222.
For those who are unable to pay due to Coronavirus, HMRC will discuss your specific circumstances to explore:
- agreeing an instalment arrangement
- suspending debt collection proceedings
- cancelling penalties and interest where you have administrative difficulties contacting or paying HMRC immediately
The helpline opening hours are Monday to Friday 8am to 4pm. The helpline will not be available on Bank Holidays. HMRC say that these reduced opening hours are due to fewer staff being available due to the Coronavirus epidemic and to be prepared for a long wait.
Veracity are here and available to help you and your businesses through this extremely challenging period.
If you have any questions or concerns, drop us an email at [email protected] or call us on 01628 950500.