Lots of businesses are going to need financial breathing space so it has to be a good idea to delay paying tax where you can. It is actually really easy so here’s how to delay paying the Tax Man so read on.
HMRC have unveiled a package of financial measures to shore up the economy against the impact of the Covid-19 pandemic:
- All businesses, including those on Payments on Account, can defer VAT payments for Q1 until March 2021 without an application being necessary. Any direct debits should be cancelled so that HMRC’s system does not collect the VAT payment.
- To defer payment for three-months of any taxes other than VAT then all you need to do is ask – the number to call is 0800 024 1222.
- For anyone who may be struggling to pay their tax due to the COVID-19 outbreak HMRC have opened a dedicated helpline on 0800 159 559.
If you need time to pay VAT by instalments or over a period of more than 3-months see here for our Time to Pay blog.
You can find HMRC’s full guidance on ‘COVID-19: SUPPORT FOR BUSINESSES here.
Of course, financial concerns and how to delay paying the Tax Man are only one aspect of the impact of the Corona Virus. Businesses are having to completely rethink the way they operate. All the extra logistical and administration challenges businesses are facing comes at a time when Phase II of Making Tax Digital (MTD) was due to come into force (rumoured to be postponed) with the Domestic Reverse Charge (DRC) due in the Autumn. Obviously which much bigger fish to fry, like personal and business survival, surely no-one will be ready for either change so perhaps we can hope both will be postponed.
Please give us a call if there is anything we can do to help.