VAT Payments

-
VAT payments are being deferred by 3 months. I believe that we still file returns in the usual way. This applies from now until 30 June 2020. My understanding is that you can either pay (if you can afford it) or you can cancel your payment. If you don't want to pay and have a direct debit in place, my suggestion is to make sure the DD has been cancelled. But you will need to put a diary note in place after 1 July 2020 to reinstate the DD.

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.

Comments

  1. Matt Parrett - Tax Shop Accountants24 March 2020 at 23:14

    Whilst they originally said the deferral is an automatic, it now says you need to cancel your DDs

    "Customers who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. Please do so in sufficient time so that HMRC do not attempt to automatically collect on receipt of your VAT return"

    ReplyDelete

Post a Comment

Please feel free to add a comment if there are issues that you think will be beneficial to you and others.

Popular posts from this blog

Employee support

-
Details still to follow, but businesses are to be able to reclaim 80% of furloughed workers salary costs, up to £2,500 per month. Applications will be through an online portal supposedly during the week beginning 23rd March. Effectively, rather than making staff redundant, this is a measure to keep staff employed despite not being able to afford salaries. There may well be opportunities for "1 person companies" here by increasing salaries from the current minimal one that has been advice for many years. But at this point, too early to say what to do. There is a very good article by one of the tax experts at Francis Clarke here  that has more questions than answers over this topic. So we just need to wait and see. How to access the scheme You will need to: designate affected employees as ‘furloughed workers,’ and notify your employees of this change - changing the status of employees remains subject to existing employment law and, depending on the employment contract,
Read more

Help for self Employed update 26/3/20

-
A new scheme known as the SELF EMPLOYMENT INCOME SUPPORT SCHEME was introduced on 26th March. Help is at hand for most self employed people, full details of what has been published below. Limited company "1 man bands" unfortunately do not count as self employed and will only be able to claim 80% of salary (pre March 2020, so no backdating) under the CV Job retention scheme as a furloughed employee. I understand that the self employed will still be able to work to qualify for the money, but they will need to have suffered loss as a result of the CV. There is no guidance as to how much of a loss they will have had to suffer. More will follow I am sure. But you ARE allowed to carry on working Broadly the money, payable in June at the earliest will come as a lump sum and will be based on average profits (after expenses) of the 3 years ending 5 April 2019 . It seems likely that this will be the taxable profit (i.e if you bought a van say in one of the years, that would could
Read more

£10,000 for small businesses.

-
Full details published here on the conditions for the grants for business rates paying businesses - all businesses £10,000, Retail, Hospitality and Leisure up to £25,000. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/875348/small-business-grant-fund-and-retail-guidance-v2.pdf
Read more