25 March 2020

Please see the below information which may be helpful to your cashflow in these difficult times:

PAYE – Please be aware that if your PAYE is less than £18,000 per annum (£1,500 per month on average) you may be able switch to quarterly payments. The quarters and the payment deadlines are as follows:

Jan, Feb, Mar     –  Payable by 22nd April

Apr, May, June  – Payable by 22nd July

Jul, Aug, Sept     – Payable by 22nd Oct

Oct, Nov, Dec     – Payable by 22nd Jan

Please see the following HMRC link for more information on paying your PAYE:

https://www.gov.uk/running-payroll/paying-hmrc

 

VAT – VAT payments due between 20th March 2020 and 30th June 2020 can be deferred until the end of the 2020/21 tax year (5th April 2021). This is eligible to all UK businesses, if you are set up to pay by direct debit we would suggest cancelling the direct debit to avoid the payment being taken if you wish to take advantage of this deferral period.

Please see the following HMRC link for confirmation:

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

 

Income Tax – Second payments on account due by the 31st July 2020 will be deferred until the 31st January 2021. No penalties or late payment charges will be issued during this deferral period. HMRC have also stepped up their time to pay offers for any tax liabilities currently overdue as a result of temporary financial distress as a result of  COVID-19.

The following link provides details:

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses#support-for-businesses-paying-tax-time-to-pay-service

 

Corporation Tax – at present no deferrals are in place however time to pay offers can be negotiated on the same basis as income tax so please use the same link for further information.