Whatever the size of business most make payments to HMRC in one form or other at some time of year.
If making these payments is going to be difficult over the next few months there are various deferment plans in place – these are automatic and you do not need to contact HMRC.
VAT deferral – any payment due between 20 March 2020 and 30 June 2020 can be deferred until 30 June 2020 – so practically this will relate to quarters ending 29 February 2020 and 31 March 2020.
It will still be payable – so if your business and your cash flow is not affected then deferring may not be of real benefit – and it may be that those who can should keep paying to keep some payments going into the Exchequer.
Income tax deferral – self assessment payment due at the end of July – this can be deferred until 31 January 2021.
Again – this is a deferral so if you can pay it this may be the better option as at the end of January 2021 you may have to pay the July payment, the January balancing charge and the payment on account of 2020/21.
If however you are expecting your business to be heavily affected the liability for 20/21 may be unusually low – in which case deferral may be the best option.
By acting promptly on your personal tax return for 2020/21 you may be able to predict your liabilities earlier and act appropriately.
No interest or penalties will be charged regarding these deferments.
Corporation Tax, PAYE etc
HMRC have extended their Time to Pay scheme – this is done on a case by case basis and you need to agree the terms.
If you are already in a time to pay agreement that you cannot now adhere to you should contact HMRC to discuss.
The HMRC line is 0800 0159 559. Link Here.
Disclaimer: this is our interpretation based on the information available and may be subject to revision so please check before acting upon it March 2020