HMRC has published additional guidance for opting in to the further deferral of VAT. Any business that doesn’t opt into the scheme will need to settle its liabilities by 31st March 2021.
The scheme opens on the 23rd February and will remain open until the 21st June 2021. If a business is on the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme, they will be invited to join the new payment scheme later in March 2021.
The date of registration will determine the maximum number of payments:
11 for those who register before the 19th March
10 for those who register before the 21st April
9 for those who register before the 19th May
8 for those who register before the 21st June
Your accountant is not allowed to set up the repayment plan for you.
If you need extra help to pay you can contact HMRC on 0800 024 1222 before the 30th June 2021. Further online help can be found here.
Income Tax – “Time to Pay”
Whilst tax penalties for late returns will not be charged provided that the return is submitted by the 28th February 2021, interest is still charged on late tax.
In addition, late payment penalties are charged for tax remaining unpaid for 30 days, 6 months and 12 months. These penalties can be avoided if a Time to Pay arrangement is agreed with HMRC.
Providing the outstanding tax is less than £30,000, arrangements can be made automatically online at least 72 hours after the return has been submitted.
To avoid the 30 day penalty, the arrangement must be in place by the 2nd March 2021.
As the payment due included the first payment on account for the 2020 to 2021 tay year, taxpayers whose income has been significantly reduced can request that the payment on account be lowered.
Bonce Back Loan Scheme
The new flexible repayment scheme termed “Pay As You Grow” will allow the loan term to be extended to 10 years at the same interest rate. Borrowers can opt for interest only payments for 6 months on 3 separate occasions. And opt to pause repayments for up to 6 months.
Lenders should contact borrowers to provide information on repayment schedules and flexible repayment options 3 months before their first payment is due.
Grants for Wet-Led Pubs
The application deadline for these grants has been extended to the 28th February 2021. Find out more about the scheme and how to apply here.