{"id":20054,"date":"2020-04-08T14:14:47","date_gmt":"2020-04-08T14:14:47","guid":{"rendered":"https:\/\/smh.group\/?p=20054"},"modified":"2023-02-15T13:43:53","modified_gmt":"2023-02-15T13:43:53","slug":"managing-through-covid-19-vat-and-tax-deferral","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/managing-through-covid-19-vat-and-tax-deferral\/","title":{"rendered":"Managing through Covid-19: VAT and tax deferral"},"content":{"rendered":"\n<p><strong>To help businesses\nand individuals manage their cashflow during the Covid-19 crisis, HMRC are\ndeferring VAT payments that become due between 20 March and 30 June 2020, and\nalso the second self-assessment payment on account for the tax year 2019\/20 due\non 31 July 2020.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>VAT<\/strong><\/h2>\n\n\n\n<p>Deferral is automatic, although you can pay as normal if you wish. There is no need to tell HMRC that you are deferring a <strong><span style=\"text-decoration: underline;\"><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/vat-returns\/\">VAT<\/a><\/span><\/strong> payment.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>VAT returns still need to be submitted on\ntime.<\/li><li>Deferred VAT must be paid by 31 March 2021,\nand no interest or penalties will be charged on the deferred amount. The actual\ndate may be a month or two later for quarterly VAT returns, but this has yet to\nbe confirmed.<\/li><li>VAT refunds will continue to be made as usual.<\/li><li>If using the annual accounting scheme,\npayments on account and the annual payment can also be deferred. However, VAT\nMOSS payments are not covered.<\/li><\/ul>\n\n\n\n<p>If you pay VAT by direct debit you will need to cancel the direct debit\nimmediately, otherwise HMRC will automatically make the withdrawal from your\nbank. Check before reinstating the direct debit because the deferral period could\npotentially be extended.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Payment on account<\/strong><\/h3>\n\n\n\n<p>If you\u2019re due to\npay a self-assessment payment on account by 31 July 2020 but you are going to\nhave difficulty in making the payment because of the impact of Covid-19, then\nyou can defer the payment until 31 January 2021; this doesn\u2019t just apply to the\nself-employed. As for VAT, deferral is automatic, with no interest or\npenalties.<\/p>\n\n\n\n<p>If you are going to\nhave difficulty making the payment due on 31 January 2021, you might be able to\nset up a payment plan with HMRC.<\/p>\n\n\n\n<p>Before deferring the payment, remember that the deferred amount will\nbecome due at the same time as your balancing payment for 2019\/20 and the first\npayment on account for 2020\/21. So as not to find yourself with a large bill at\nthat time, consider making advance payments against this bill if you possibly\ncan.<\/p>\n\n\n\n<p>You can find out more about the government\u2019s COVID-19 measures to support businesses <a href=\"https:\/\/www.gov.uk\/government\/publications\/guidance-to-employers-and-businesses-about-covid-19\/covid-19-support-for-businesses.\"><strong><span style=\"text-decoration: underline;\">here<\/span><\/strong><\/a>.<\/p>\n\n\n\n<p>We can also help you through any of the measures set out to help businesses during this difficult time. Contact one of our <strong><span style=\"text-decoration: underline;\"><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/\">Accounting &#038; Business Advisory<\/a><\/span><\/strong> for more information on <strong>0114 266 4432<\/strong> or <strong><span style=\"text-decoration: underline;\"><a href=\"mailto:info@smhca.co.uk\">info@smhca.co.uk<\/a><\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>To help businesses and individuals manage their cashflow during the Covid-19 crisis, HMRC are deferring VAT payments that become due between 20 March and 30 June 2020, and also the second self-assessment payment on account for the tax year 2019\/20 due on 31 July 2020.<\/p>\n","protected":false},"author":4,"featured_media":17932,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[494,498,11,250,19,76,521,261],"class_list":["post-20054","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smh-accounting-business-advisory","tag-coronavirus","tag-covid19","tag-hmrc","tag-self-assessment","tag-tax","tag-vat","tag-vat-refunds","tag-vat-returns"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - 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