Your accounting deadlines and tax liabilities
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Time to pay taxes
A new time to pay helpline has been set up for taxes due. We recommend contacting HMRC before taxes are overdue, but time to pay extensions should be possible for PAYE, Corporationtax and VAT (see below). The time to pay COVID-19 dedicated helpline is 0800 0159 559.
All letters advising clients of liabilities will now include contact details of the new time to pay helpline, please speak with us if you need help with deferring payments or planning future payments.
There was an automatic deferral of VAT due for payment in the period from 20 March 2020 to 30 June 2020. This VAT must was then be paid by 31 March 2021, on 24 September 2020, the Chancellor announced that businesses who deferred VAT due from 20 March to 30 June 2020 will now have the option to pay in smaller payments over a longer period.
Instead of paying the full amount by the end of March 2021, you can make smaller payments up to the end of March 2022, interest free. This is not automatic and will require action if you wish to spread payments.
You will need to opt-in to the scheme, and for those who do, this means that your VAT liabilities due between 20 March and 30 June 2020 do not need to be paid in full until the end of March 2022.
Those that can pay their deferred VAT can still do so by 31 March 2021.
- If you have a personal tax payment on account due 31 July 2020 you may be eligible to defer the payment until 31 January 2021.
- The deferral is available to any self-assessment tax payer “finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus”.
- If you wish to defer this is automatic, there is no need to contact us or HMRC, no interest will be charged if the tax is paid on or before 31 January 2021. You should retain evidence of your inability to pay (e.g. bank statements for July 2020)
- If you defer you may have the deferred July 2020 payment, any 19/20 balancing charge and the first 20/21 payment on account all due at 31 January 2021. You may be eligible to spread the amount that is due on 31 January 2021 for up to 12 months payable in monthly instalments by direct debit. We need to file your tax return before this can be applied for. Interest will be charged on the balance outstanding at the HMRC standard rate. You can apply for this online if you have a personal tax account/HMRC gateway log in yourself, otherwise call 0300 200 3822, go to https://www.gov.uk/difficulties-paying-hmrc , or ask us for more help on this.
Companies to receive 3-month extension period to file accounts during COVID-19
Most companies have an automatic 3 month extension during 2020 to their filing deadline for accounts, but the tax deadline remains 9 months and 1 day. Check Companies House to see your deadlines if unsure.