The Government have announced that they will defer VAT payments for 3 months and self employed income tax payments due in July 2020. These are automatic offers and no application will be required.
For VAT, the deferral will apply from 20 March 2020 until 30 June 2020 thereby covering VAT periods ending 29 February 2020, 31 March 2020, 30 April 2020.
Businesses will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.
For Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021.
No penalties or interest for late payment will be charged in the deferral period.
HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities.