Deferring Tax and VAT

HMRC has announced that both VAT and Income Tax Self-Assessment payments can be deferred under the following conditions. HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities. See HMRC support for businesses page here >>>

Valued Added Tax (VAT) payments can be deferred for 3 months

  • The deferral will apply from 20 March 2020 until 30 June 2020.
  • 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 the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period.
  • VAT refunds and reclaims will be paid by the government as normal.

Self-employed Income Tax payments due in July 2020 will be deferred to January 2021

  • For 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.
  • No penalties or interest for late payment will be charged in the deferral period.

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