VAT Deferral – Over half a million businesses deferred VAT payments, which were due in March to June 2020, with these payments becoming due at the end of March 2021.
As part of the Winter Economy Plan the government has now announced the option for such businesses to spread their payments over the financial year 2021/22.
Businesses will be able to choose to make 11 equal instalments over 2021/22.
All businesses which took advantage of the VAT deferral can use the spreading scheme.
Businesses will need to opt in and HMRC will put in place an opt-in process in early 2021.
Enhanced Time to Pay for self assessment taxpayers
Taxpayers were able to defer the income tax self assessment payment on account for 2019/20, due by 31 July 2020, to 31 January 2021.
There are also other amounts due on 31 January 2021 – a balancing payment for the 2019/20 tax year and the first payment on account for the 2020/21 tax year.
Taxpayers with up to £30,000 of self assessment liabilities due will be able to use HMRC’s self-service Time to Pay facility to secure a plan to pay over an additional 12 months.
This means that self assessment liabilities due in July 2020, and those due in January 2021, will not need to be paid in full until January 2022.
Any self assessment taxpayer not able to pay their tax bill on time, including those who cannot use the online service, can continue to use HMRC’s Time to Pay self assessment helpline to agree a payment plan.
Please feel free to contact the IN Accountancy team for any support you may need with either of these schemes.
Internet link: Gov.uk news