Wednesday, 1st April 2020
HMRC have set up a dedicated Time To Pay Service specifically to help business owners who are concerned about being able to pay outstanding tax liabilities due to COVID-19. For example:
- Corporation Tax
- PAYE and CIS
All businesses including those that are self-employed who are finding themselves in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through the Time To Pay Service.
Time To Pay arrangements allow HMRC to collect tax in a cost effective way. They allow viable customers who cannot pay on the due date to make payment(s) over a period that they can afford.
HMRC have advised that a Time To Pay arrangement is agreed on a case-by-case basis and is tailored to each individual circumstance and specific liabilities.
CORPORATION TAX, PAYE and CIS
HMRC have not offered any specific extensions to payment deadlines, however they have advised that if you are experiencing difficulties in making your payment due to COVID-19 then you should contact them on the dedicated number.
They will need to know why you are cannot pay and what measures you will be able to put in place to enable you to eventually make the payment. E.g. have you taken out a Business Interruption Loan, are your awaiting receipt of Grant funding due to Small Business Grant Funding or perhaps the Job Retention Scheme.
Contact ONYX now to ensure that your monthly management information is accurate and up to date. Having detailed cash flows will offer HMRC the assurances that you will be able to pay and will assist them to put together a time frame that does not see both you and your business suffer financial hardship.
You can delay (defer) any VAT payments due between 20 March 2020 and 30 June 2020. If you choose to defer a VAT payment, you will have until 31 March 2021 to pay it.
The deferment does not apply to VAT MOSS payments.
HMRC will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement.
You do not need to inform HMRC if you wish to defer payment. You can opt in to the deferral simply by not making VAT payments due in this period. If you pay by Direct Debit you should cancel this with your bank. You should do so in sufficient time so that HMRC does not attempt to automatically collect on receipt of your VAT return.
Unsure how this will affect your monthly or quarterly VAT submissions or need any guidance? Contact ONYX now and we can manage all of your VAT workings, calculations and submissions, liaising with HMRC on your behalf.
If you are due to pay a self-assessment payment on account by 31 July 2020 but the impact of the coronavirus causes you difficulty in making payment by that date, then you can defer payment until January 2021.
You do not need to be self-employed to be eligible for the deferment. The deferment is optional and will be automatically applied if no payment is made. HMRC have advised that no penalties or interest for late payment will be charged if you defer payment until 31 January 2021.
Unsure if you qualify or if you have a payment becoming due then contact ONYX now and our Tax Team will review your self-assessment along with the liabilities becoming due and payable next year to help with cash flow and budgets.
Need help with the Self-employment Income Support Scheme and unsure how to calculate you average earnings. Contact us now and we will assist with your application once the HMRC service is up and running.
You should contact HMRC as soon as possible if you have missed your payment. How you contact HMRC will depend on what you need to pay.
- HMRC – Dedicated Coronavirus Helpline
If you cannot pay because of Coronavirus then call the HMRC Coronavirus helpline on 0800 024 1222. It is open Monday to Friday, 8am to 4pm.
- Unable to pay for other reasons
If you cannot pay your self-assessment tax bill and you owe less than £10,000 then you might be able to arrange to pay in instalments online.
Alternatively, you can contact the self-assessment helpline on 0300 200 3822 for further advice.
If you are unable to pay other taxes then you can contact the Payment Support Service on 0300 200 3835 for further advice.
Need help? Get in touch with Onyx
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