Support for businesses through deferring VAT and Income Tax payments
This is the latest measure the government have announced in its Coronavirus Business rescue Package and will come as welcome news for many businesses.
HMRC have announced that they will be deferring VAT payments and Income tax payments for all VAT registered UK businesses.
For VAT, the deferral will apply from 20 March 2020 until 30 June 2020.
There is no need to apply for this scheme as it will apply automatically. Businesses will not need to make a payment for VAT during this period and will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have built up during this deferral.
For Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021.
This is an automatic offer with no applications required.
No penalties or interest for late payment will be charged in the deferral period.