- For VAT, the deferral will apply from 20 March 2020 until 30 June 2020. – All UK businesses are eligible and 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.
- 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 and 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.
- A dedicated helpline has been set up to help businesses and self-employed individuals in financial distress and with outstanding tax liabilities receive support with their tax affairs. Through this, businesses may be able to agree a bespoke Time to Pay arrangement. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559. Click here for more information.
- A 12-month business rates holiday for all businesses in the retail, hospitality, childcare and leisure sectors. The businesses that meet the criteria will automatically receive a new 2020/2021 bill with a full reduction from 18 March 2020.
Further details of the businesses eligible can be found here.
If you do not receive an amended bill, but think your business meets the criteria, please complete a Retail Discount application form.