Tax and Companies House Deferrals

As part of its measures to reduce the economic impact of the Coronavirus crisis, the Government has announced deferrals to a number of HM Revenue & Customs (HMRC) and Companies House deadlines to ease the strain on businesses and self-employed individuals.

VAT

VAT payments have been deferred by three months from 20 March 2020 until 30 June 2020. During this period, businesses will not need to make VAT payments to HM Revenue & Customs (HMRC).

Businesses will have until the end of the 2021 tax year to pay any liabilities that have accumulated during this period.  The deferral is automatic and businesses do not need to apply to be able to benefit from it.

However, you must cancel the direct debit manually with your bank immediately to make use of this deferment.

VAT refunds and reclaims will be paid by the Government as normal.

Income Tax

Income Tax Self-Assessment payments due on 31 July 2020 will be deferred until 31 January 2021 for self-employed individuals.

Again, this is an automatic offer and it is not necessary to apply to benefit from it. No penalties or interest for late payment will be charged during the deferral period.

Time to Pay (TTP) Arrangements

HMRC is making TTP arrangements available to any business that can show that all other avenues for financing have been exhausted.

For further guidance on TTP please read our earlier update by clicking here.

Companies House Filing

Businesses affected by the COVID-19 pandemic can apply to Companies House to request an extension to file their accounts, reports and confirmation statements.

Companies House is offering a maximum extension of three months for struggling businesses, but they must meet stringent conditions, including a rule that an appeal to extend must be lodged before a company’s current filing deadline.

Appeals will be treated on a case-by-case basis and the process will mirror the existing criteria based on cases for unforeseen poor health.

Companies House has made it clear that any company accounts filed late will still incur an automatic penalty.

Further guidance can be found on our website, by clicking here.

Here to Help

If you require assistance with the deferral of tax or Time to Pay arrangements, please speak to our team.

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