TAX PAYMENTS

EXTENSIONS - [PUBLISHED 24-SEP-20]

  • VAT - the deferred vat below due by 31-Mar-21 can be extended to 31-Mar-2022; BUT:
    • The previous scheme was automatic, no application was necessary.
    • The extension is an OPT-IN service so you have to apply & prove you meet the criteria.
  • INCOME TAX - any tax due in Jan-21 can be extended to 31-Jan-2022; BUT:
    • The previous scheme below was automatic, no application was necessary.
    • The extension is an OPT-IN service so you have to apply & prove you meet the criteria.

 

PAYE & PENSION DEDUCTIONS

  • All PAYE and Pensions deductions have to be paid on time.

CORPORATION TAX

  • All Corporation Tax has to be paid on time.

 

VAT

  • VAT liabilities accrued during 20th Mar 2020 - 30th Jun 2020, deferred; must be caught up and paid by 31st Mar 2021.
  • APPLIES TO ANY PAYMENT THAT FALLS DUE WITHIN THE DATE ABOVE.
  • VAT RETURNS ENDING FEB-20, MAR-20, APR-20 are included.
  • VAT period ending May-20 is currently excluded as the payment due date is 7th July, thus outside the above date range.
  • VAT direct debits
    • WILL NOT be automatically cancelled, therefore you must cancel your DD if you wish to delay your payment.
    • Future payments will need to be paid manually or a new DD set up.
    • An idea is to save the vat money in a separate account, use it to cover wages until the 80% rebate comes through.
  • VAT refunds will be processed as normal.
  • Eligibility - all VAT registered businesses.
  • How to access - automatic, no applications required.
  • Another plan is use the VAT money to cover wages and costs, then use the either the business rates grant or employees grant to replenish your VAT savings.
  • My advice - if you can afford to pay it, pay it, it will avoid future cash flow issues.
  • All VAT returns must still be submitted to HMRC on time.
  • All subsequent VAT payment must be paid on time.
  • UPDATE 22-SEP-2020 - IF YOU DEFERRED A VAT PAYMENT FROM Mar-Jun 2020.
    • If you intend to pay in full, there is no changed to the deadline payment dated 31st March 2021 or sooner if you prefer.
    • You now have the option to pay any deferred vat over time; if you need to do this you should call 0300 200 3835; have your vat number to hand.
    • This only applies to vat that fell due between 20th Mar - 30th Jun, which in effect was the vat period ended Feb-Mar-Apr 2020.
    • All other vat periods need to be paid  on time.

 

 

INCOME TAX

  • All Jul-20 payments deferred until Jan-21.
  • Eligibility - all self-employed people completing self-assessment tax returns.
  • How to access - automatic, no applications required.
  • My advice - if you can afford to pay it, pay it, it will avoid future cash flow issues.
  • All tax returns must still be submitted on time.

 

 

TAXES NEED TIME TO PAY

  • There is a dedicated helpline for anyone who needs to arrange time to pay with taxes. 08000 159 559.