Covid-19 General Update


Updated 10th July 2020

1. Defer your Self Assessment Payment on Account

You have the option to defer your second payment on account if you are:

  • registered in the UK for Self Assessment
  • and finding it difficult to make your second payment on account by 31st July 2020 due to the impact of coronavirus.

You can still make the payment by 31 July 2020 as normal if you’re able to do so.

HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it’s paid on or before 31 January 2021.

The usual interest, penalties and collection procedures will apply to missed payments after 31st January 2021.

You will still need to submit your Self Assessment tax return to HMRC on time.

If you Choose to Defer your Payment on Account (POA)

Choosing to defer your POA will not stop you from being entitled to other coronavirus support that HMRC provides.

You also do not need to tell HMRC that you’re deferring your payment on account as this will automatically be applied if you do not pay what is owed before 31st July 2020.

You must make your second payment on account on or before 31 January 2021 if you choose to defer. Other payments you may have to make by this date include any:

  • balancing payment due for the 2019 to 2020 tax year
  • first payment on account due for the 2020 to 2021 tax year

You can check payments you need to make towards your next tax bill by signing in to your online account.

There are many options open to you in terms of paying your Self Assessment Payment on Account.

  • Payment in Full – You can pay your second payment on account bill in full any time between 31 July 2020 and 31 January 2021 using the online service.
  • Payment in Installments – You need to contact HMRC if you already have overdue tax which you’re paying through a Time to Pay instalment arrangement and want to include your second payment on account in that arrangement.If you do not have other overdue taxes, you can make your payment in instalments any time between now and 31 January 2021 by setting up a budget payment plan.
  • Payments by Direct Debit – If you choose to defer and normally make your payments on account by Direct Debit, you should cancel your Direct Debit through your bank as soon as possible so that HMRC will not automatically collect any payment due. You can cancel online if you’re registered for online banking.

 

2. VAT

If you’re a UK VAT-registered business that deferred VAT payments between 20 March 2020 and 30 June 2020, you now need to:

  • Set-up cancelled Direct Debits in enough time for HMRC to take payment
  • Continue to submit VAT returns as normal, and on time
  • Pay the VAT in full on payments due after 30 June

Any VAT payments you have deferred between 20 March and 30 June should be paid in full on or before 31 March 2021.

 

3. SEISS – Deadline for Claiming the 1st Grant is 13th July

The 2nd and final grant is available from August for businesses who have been adversely affected on or after 14th July 2020.

Click Here for More Information on the 2nd  and Final SEISS Grant.

 

4. Summer Economic Update
 
The Chancellor of the Exchequer, Rishi Sunak, delivered his “Summer Economic Update” on Wednesday 8th July 2020. 

Throughout his statement, Chancellor Sunak announced various new schemes to help stabilise the UK economy as we all begin to slowly creep out of COVID-19’s shadow.

Please Click Here for a Summary on his Statement

 

http://www.abacni.co.uk/category/articles/