PHTM COVID-19 FINANCE UPDATE


DEFERRAL OF VAT PAYMENTS DUE TO CORONAVIRUS (COVID-19)


Temporary changes to the VAT payments due between 20 March 2020 and 30 June 2020 to help businesses manage their cash flow.


If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to: • defer the payment until a later date • pay the VAT due as normal


HMRC will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement.


VAT PAYMENTS YOU CAN DEFER


You can only defer: • quarterly and monthly VAT returns’ payments for the periods ending in February, March and April


• payments on account due between 20 March 2020 and 30 June 2020


• annual accounting advance payments due between 20 March 2020 and 30 June 2020


The deferral does not cover payments for VAT MOSS or import VAT. VAT REPAYMENTS AND RETURNS


HMRC will continue to process VAT reclaims and refunds as nor- rmal and most repayments are paid within 5 working days. https://www.gov.uk/reclaim-vat


Repayments will not be offset against any deferred VAT, but they will be offset against existing debts.


You can apply online to move to monthly returns to improve your cashflow if you’re in a repayment position. https://www.gov.uk/government/publications/vat-changes-to- registration-details-vat484


HOW DEFERRING VAT AFFECTS PAYMENTS ON ACCOUNT


If you defer a payment on account between 20 March 2020 and 30 June 2020 but the balancing payment is outside of these dates, the amount you must pay is the balancing payment less any deferred payments. Deferring payments will not create a repayment. https://www.gov.uk/guidance/vat-payments-on-account


You will still need to submit your VAT returns to HMRC on time. https://www.gov.uk/vat-returns/send-your-return


IF YOU CHOOSE TO DEFER PAYING YOUR VAT


If you choose to defer your VAT payment you must pay the VAT due on or before 31 March 2021. You do not need to tell HMRC that you’re deferring your VAT payment.


PAYMENTS MADE BY DIRECT DEBIT


If you normally pay by Direct Debit you should cancel your Direct Debit through your bank as soon as possible so that HMRC will not automatically collect any VAT due. You can cancel online if you’re registered for online banking.


AFTER THE VAT DEFERRAL ENDS


VAT payments that are due after the end of the deferral period will need to be paid as normal. HOW TO GET HELP


Time to pay arrangements are available to all businesses and individuals who are in temporary financial distress as a result of coronavirus. Time to pay arrangements that started before 20 March 2020 should still be paid.


If you’re struggling to pay your tax bill on time, or you’re experi- encing financial difficulties you can contact HMRC’s Time to Pay service. https://www.gov.uk/difficulties-paying-hmrc


SPECIALIST ACCOUNTANTS FOR THE PRIVATE HIRE AND TAXI INDUSTRY


18


info@drivertax.co.uk 020 8529 2600 www.drivertax.co.uk JUNE 2020


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112