News

In order to ease the cash flow burden on businesses in the coming weeks, HMRC have announced that they will temporarily defer VAT payments

When?

The deferral will apply from 20th March 2020 until 30th June 2020

Eligibility

All UK businesses are eligible

How to access the scheme

This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers 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.

Please note: It is only the VAT payment that is deferred. VAT registered businesses must still submit their VAT returns before the relevant deadline.

Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis.

All UK employers with a PAYE scheme will be eligible.

HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.

Get in touch with us if you would like assistance with your payroll during this time.

The government have announced that as part of the response to Covid-19 they have delayed the reforms to the off-payroll working rules by 12 months to 6 April 2021 instead of 6 April 2020.

To find out what the government has to say click here

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