It is unlikely that the grants towards 80% of inactive employees’ wages will be available until the end of April. This is why, we think, the Chancellor has sought to inject some liquidity into businesses relatively immediately by:
- Allowing businesses to elect to defer their current VAT payments. Note that is not free money – you will have to pay it eventually, but it frees up cash in the short term.
- Slightly less immediately, allowing individuals to elect to defer their July 2020 tax payment until January next year. Again, care should be exercised here, you don’t want to simply give yourself a problem later
Who can claim?
Anyone who is VAT registered
Anyone who has a July self-assessment payment to make
How do you claim?
This is not yet clear, HMRC are working on it and we will update you as soon as we know. We assume you’d just not pay! But there must be some mechanism which will be introduced to show you are electing to defer. Remember we are here to support you. From Monday 23 March our telephone lines will be open from 7 in the morning and will stay open until 7 at night.