The Government is offering further support for businesses and the self-employed in these uncertain times by allowing extra time for payment of VAT and income tax.
How does deferring VAT payments work?
- Businesses will not be required to make VAT payments for the period between 20 March 2020 and 30 June 2020.
- There is no application for this – the Government has described it as an ‘automatic offer‘.
- Payments that are deferred during this period must be paid by the end of the 2020 – 2021 tax year.
- Refunds and reclaims will still be paid by the Government as normal.
If I’m self-employed can I delay payment of income tax?
- If you are self-employed you can delay payment of income tax due on 31 July 2020.
- You can delay payment until 31 January 2021.
- The Government is again, describing this as an ‘automatic offer‘, and so you don’t need to apply. No interest or penalties will be charged for the delayed payment.