Covid19 – Income Tax, VAT and Business Rates

Income Tax Payments

• If you are due to make your second payment on account by 31^st July 2020 for your personal tax bill you can choose to defer this up until 31^st January 2021.
• This deferment is optional and is an automatic offer which you do not need to apply for.
• No penalties or late payment interest will be charged.

VAT

• Businesses who are VAT registered are being offered a VAT payment deferment scheme.
• If you have a VAT quarter ending 29^th February 2020, 31 March 2020 or 30 April 2020 you will still be required to submit your return by the usual deadline.
• You can choose to defer the payment of the February, March & April returns if necessary, you will have until 31 March 2021 to pay.
• All future returns will still currently be required to be submitted and paid to their normal deadlines (this is subject to change).
• If you usually pay by Direct Debit and want to defer your payment, you must cancel your Direct Debit with your bank, HMRC cannot do this for you.
• All repayments will be processed in the usual timescales.

Business Rates

• An introduction of a business rates holiday for retail, hospitality, leisure businesses and nurseries for the 2020/21 tax year.
• There is no need to apply, your local authority are required to issue you with a revised bill.
• Businesses that occupy a property but pay little/no rates because of the small business rate relief or rural relief are eligible for a one off £10,000 grant.
• There is again no need to apply, your local authority will be in touch in you are eligible.