There have been so many changes this year to the dates the various taxes are due for payment and, although we have kept you informed along the way, we thought it would be useful to have a summary to refer to.
Let’s Look at the Various Taxes
Depending on your circumstances you could have the following taxes to pay.
VAT
VAT payments which were due between 20 March 2020 and 30 June 2020 were automatically deferred to 31 March 2021.
If you have not settled the VAT you now have a further 11 months from March 2021 to pay it without incurring interest.
This means you have until March 2022 to pay VAT that was due between 20 March and 30 June 2020.
You must arrange time to pay with HMRC to spread the cost over 11 months. Click on the link to find out more.
Self Assessment July 2020 Payment on Account
This was automatically deferred to 31 January 2021.
However, you can now arrange to pay this in instalments up to 31 January 2022, if your liability is less than £30,000 and you do not currently have any other payment plans.
You can also arrange time to pay for any other self-assessment payment that falls due on 31 January although if you are able to pay the liability you should do so.
Go to your online HMRC account to set up a payment plan once your tax return has been submitted.
PAYE
This is normally due monthly or quarterly by 22 of the following month.
This was not automatically deferred like VAT or Self Assessment.
If you are unable to pay, you can also make time to pay arrangements with HMRC by calling 0300 200 3835.
Corporation Tax
This is normally due 9 months after your year end.
This was not automatically deferred like the VAT or Self Assessment.
Time to pay arrangements need to be made by calling HMRC on 0300 200 3835.
When you speak to HMRC to set up a time to pay arrangement you will need the following information:
The tax reference (eg VAT number, PAYE reference).
The amount due.
What period the amount relates to.
How much you can pay, and over how many months.
A note of any other taxes already under a time to pay arrangement.
Any other taxes you want to add to a time to pay arrangement.
Deferring tax liabilities may be the answer for some, but please remember that you will still need to be setting funds aside for the various tax liabilities that are now accruing in your current financial period.
If you are unsure what is outstanding you can check by logging into your personal or business tax account. If you haven’t set this up yet check out are blogs on how to do so by clinking on the links in the line above.
