Further support to businesses and the self-employed, to delay the payment of various taxes was announced last week. They include:
VAT
Any VAT that falls due for payment in the period from 20 March 2020 to 30 June 2020 can be deferred until the end of the 2020-21 tax year.
This is not a cancellation of any liability that falls due in this period, merely a deferral. Businesses will need to ensure that they have funds to settle any arrears on or before the end of March 2021 (5 April 2021).
Any refunds due from HMRC will be paid as usual.
Second payment on account due 31 July 2020
It has been confirmed that self-employed persons’ self-assessment, second payment on account for 2019-20, due 31 July 2020, can be deferred until 31 January 2021.
Tax payers should be aware that as with the VAT offer, this is a deferral, not a cancellation of tax due. Those who take advantage will need to pay their second payment on account and any balancing payment for 2019-20 and any first payment on account – if any is due – for 2020-21.
Please call if you need to clarify which VAT payments can be deferred and the likely longer term cash flow effects if you defer the self-assessment payment on account in July.
In both cases there is no need to apply to HMRC to defer payments.
Source: DocSafe
