Deferring VAT and Income Tax Payments - INFORMATION ADDED

You are here: Home » News & Views » Deferring VAT And Income Tax Payments

Image for Deferring VAT and Income Tax Payments - INFORMATION ADDED

Deferring VAT

If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to:

-          defer the payment until a later date

-          pay the VAT due as normal

HMRC will not charge interest or penalties on any amount deferred due to Coronavirus.

Note that the VAT return should be submitted as usual, but the payment can be deferred.

If you choose to defer the VAT payment, you must pay the deferred VAT by 31 March 2021.

Note that if you currently pay VAT by Direct Debit, you should cancel this Direct Debit with the bank – otherwise HMRC will automatically take the payment.

For VAT returns for the quarter ended 29 February 2020, you will need to cancel the Direct Debit urgently as payment will be taken by HMRC.

Further information can be found here. 

Income Tax

• For Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021.

• If you are self-employed you are eligible. This is an automatic offer with no applications required.

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

• 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.