VAT payments deferral
As part of the government’s support for businesses during coronavirus, HMRC gave the option of deferring VAT payments if you were unable to pay on time, without incurring late payment interest or penalties. Payment of VAT falling due between 20 March and 30 June 2020 being able to be deferred until 31 March 2021.
The option to defer paying VAT ends on 30 June 2020. This means that VAT returns with a payment due date after 30 June must be paid in full, on time.
If you haven’t deferred any VAT payments, you don’t need to take any further action. If you have deferred paying your VAT and normally pay by Direct Debit you should now reinstate it. You should do this at least three working days before submitting your VAT return in order for HMRC to take payment.
Any VAT payments you deferred during this period should be paid in full on or before 31 March 2021. You can make ad hoc payments or additional payments with your subsequent VAT returns to reduce the amount outstanding, if you wish.
If you’re unable to pay the VAT due and need additional time to pay you need to contact HMRC before the payment is due.
Deferring Self-Assessment payments on account
If you’re 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 may defer payment until January 2021.
You are eligible if you are due to pay your second self-assessment payment on account on 31 July. You do not need to be self-employed to be eligible for the deferment.
The deferment is optional. If you are still able to pay your second payment on account on 31 July, you should do so.
This is an automatic offer with no applications required. No penalties or interest for late payment will be charged if you defer payment until 31 January 2021.
During the deferral period you can set up a budget payment plan to help you pay the deferred payment on account when it comes due.
HMRC tax helpline
HMRC has a helpline set up for any business or self-employed individual who is concerned about paying their tax due to Covid-19 to get practical help and advice: 0800 0159 559
The helpline is open from Monday to Friday 8am to 8pm, and Saturday 8am to 4pm (excluding bank holidays).
Other HMRC business payment support contact details can be found here