Covid-19: What help is available for tax payments?
First and foremost, whilst writing this I hope all readers are safe and healthy in these uncertain times! The Coronavirus has had a huge impact on people worldwide and we in the UK are no different. With the current state of play putting us in “partial shutdown” there are many of us who have seen their income suffer as a consequence.
I won’t go into in-depth detail on the types of help available from the government, as although the government has announced various measures to help businesses, there is never a situation where “one cap fits all” as each individuals situation needs to be assessed prior to giving the correct advice.
I will outline briefly some of the types of help available but urge all those wanting to know more to get in touch with us so we can discuss your actual scenario before advising you exactly on what you should or shouldn’t do.
Firstly, IR35 has been officially postponed from April 2020 to April 2021. This will give self employed contractors who work under a limited company umbrella and employers who hire these contractors more time to get things in place to ensure that the correct protocols are in place with regards to IR35. We have discussed IR35 in a previous blog.
VAT payments due from the 20th of March until 30th June 2020 can be deferred if you wish to exercise this option. Any VAT payments that are deferred would need to be paid off by the 31st of March 2021. Please note any VAT returns within this period still need to be filed on time and any reclaims of VAT will be processed as normal.
If you pay your tax via self assessment, any payment on account due by the end of July can be deferred until the end of January 2021. No penalties or interest will be charged for late payment during this period. Please note if you do defer payment until the end of January then you will be paying your deferred amount, your remaining tax liability and also your first payment on account for the tax year 2020/21 all in January 2021.
There are many schemes and allowances available to individuals and businesses from the government of which details can be found at https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
For any information relating to your own specific tax and business needs, please get in touch with us for a FREE NO OBLIGATION consultation and see how we can help you through these tough times.
You can contact us on firstname.lastname@example.org or call us on 0191 5111217.
We hope you all stay safe through these uncertain times.