VAT
For VAT, the deferral will apply from 20 March 2020 until 30 June 2020.
Eligibility: All UK businesses are eligible.
How to access the scheme: This 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.
Eligibility: If you are self-employed you are eligible.
How to access the scheme: 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.
Making Tax Digital
The decision has been made to provide businesses with more time to place digital links between all parts of their functional compatible software. All businesses now have until their first VAT return period starting on or after 1st April 2021 to put digital links in place.
It is important to note that despite this relaxation you’ll still need to ensure you are keeping digital records, submitting VAT returns via an API enabled software and maintaining all digital links you currently have in place. Find out more here.
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