A brief update on deferring VAT payments and the July self-assessment payment:
VAT
The deferral will apply from 20 March 2020 until 30 June 2020.
All UK businesses are eligible.
How to access the scheme
This is automatic. No application is needed. You simply don’t need to make the VAT payment which would fall due during the above period
Remember this is not free money, you still need to pay it – taxpayers will be given until 5 April 2021 to pay any liabilities that have accumulated during the deferral period.
VAT refunds and reclaims will be paid by the government as normal.
July 2020 self-assessment payment
For Income Tax Self-Assessment, payments due on 31 July 2020 will be deferred until the 31 January 2021.
You need to be self-employed; this will not apply to anyone else. So if you have a July payment to make which arises from say dividend income, you still need to pay it, though you could apply for “time to pay”. If you are uncertain if you are eligible to claim, schedule a call with our personal tax accountants on 01392 360008.
Like for the VAT deferral, this is automatic – no application is required, you just don’t pay.
No penalties or interest for late payment will be charged in the deferral period. You would need to pay the tax in the following January 2021.
For more information about tax & tax returns, or to enquire about accounting service packages, get in touch with Sidaways chartered accountants today.
---
Dan Routcliffe
Email: dan@sidaways.co.uk
Tel: 01392 360008
More Posts by Dan
More Posts in Self assessment tax
Fill out the form below and a member of our team will get back to you.
