VAT payment deferral

Any VAT payments due on 10 April, 10 May and 10 June will not be collected by HMRC. No action is required by businesses – this will happen automatically.

However! This is effectively just an interest free loan from HMRC and it will need to be repaid within twelve months. There is a risk that businesses could run into serious trouble if they are unable to pay the VAT when it falls due. We recommend that you set up a separate bank account and segregate the VAT liability. That would mean that, when the VAT falls due and payable, the funds are available.  Unless it is absolutely necessary, businesses should not dip into the VAT funds.

VAT RETURNS

VAT RETURNS MUST STILL BE SUBMITTED!! Fines will be applied if the returns themselves are not submitted

Self Assessment Tax Deferral

Any individual who had previously been advised that they are required to make a second payment on account on 31st July 2020 will not be required to make the payment at that time.

However! This tax will still be payable at a later date. You can still make the required payment on the due date, even though you are not required to. It is important to really understand that this tax is probably still payable at some stage.  It is not money to play with unless you are in absolute hardship.