Deferred Tax Payments

The Government initiative on deferred tax payments is detailed below. During this time, we strongly advise clients to keep on top on their accounting, in the event further initiatives are released and detailed accounting information is required.

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.

If you expect you may be entitled to a VAT reclaim, then you should get your VAT return filed as soon as possible to assist with cash flow.

You need to file the VAT Returns in the normal manner. HMRC have advised us that if you have a direct debit in place, then you need to contact your bank and cancel the direct debit if you wish to take advantage of the VAT deferred payment arrangement.

For all our Beehive bookkeeping clients, we will file the VAT Returns as normal. so your co-operation in supplying the information required to produce the VAT return in a timely manner will be greatly appreciated.

Whilst the Government has deferred the payment of VAT for periods to 30 June 2020, you can still opt to pay your taxes you prefer. The deadline to clear arrears is 5 April 2021.

We will update you if the measures are amended.

From the HMRC website;

Support for businesses through deferring VAT and Income Tax payments

We will support businesses by deferring Valued Added Tax (VAT) payments for 3 months. If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.

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.

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We pride ourselves on our client relationships, and the quality of our work and advice. We aim to deliver all our services in a friendly, efficient and productive manner. Our client base consists mainly of owner managed businesses, landed estates, private clients and other professionals.