Defer Tax for 3 Months
VATAll UK businesses can now defer their VAT payments for 3 months. This applies between 20 March 2020 and 30 June 2020. There is no need to apply, fill in a form or otherwise. Just take it. You will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period.
There is no direct or automatic deferral of PAYE at this time. You can seek Time to Pay Arrangements for deferring PAYE – more on that here.
CORPORATION TAX (E.G IN A TRADING SUBSIDIARY)
Just like PAYE there is no automatic deferral or relief for Corporation Tax at this time. Payments falling due or potentially late will still suffer penalties and interest. If that is the only option then speak to HMRC’s dedicated COVID 19 Time to Pay team.
CAUTIONWhilst these are essential to help everyone at this time, this may not be enough. Click here for details of more support. Don’t store up your problems. This is only a temporary reprieve and you will need to work hard to get things back on track and make sure you can make the relevant payments. If you can’t get back on track, don’t leave it too late. Keep in contact with HMRC or seek further advice if needed. Kevin Lucas is a Third Sector restructuring specialist and can be contacted via email firstname.lastname@example.org or on 0330 900 2000. More on the support available for Covid 19 can be found here