If you’re the owner of a UK business or self-employed worker in financial difficulties due to outstanding tax payments as a result of Covid-19, HMRC has scaled up the Time to Pay service.
Payments of VAT for the period from 20 March 2020 until 30 June 2020 may be deferred until April 2021, regardless of the type or size of business. However, VAT refunds and reclaims will be paid by HMRC as normal to aid businesses’ cash-flow.
Income tax self-assessment payments for the self-employed, including individual partners in partnerships, that are otherwise due on 31 July 2020 will also be deferred until 31 January 2021.
For other taxes including PAYE and Corporation tax, A Time to Pay Arrangement with HMRC is effectively a debt-repayment plan for outstanding taxes. Companies can ask HMRC for extra time to pay (this is where the name comes from). These repayment agreements usually set out that you will pay it back over a period of 6-12 months.
Whilst any such agreement will be specific to each business, the idea is that HMRC’s usual debt collection process will be deferred until the business can afford to meet its tax obligations, with any penalties and interest otherwise chargeable being suspended.
What Has Changed In The Time To Pay Scheme?
All businesses & self-employed people in financial difficulties & with outstanding tax liabilities, may now be eligible to receive support with their tax affairs. These arrangements are agreed on a case-by-case basis & tailored to individual circumstances.
Who Is Eligible For The Scaled-Up Time To Pay Scheme?
You are eligible if your business pays tax to the UK government and/or has outstanding tax liabilities.
How To Access The Time To Pay Scheme
If you have missed a tax payment or you might miss your next payment due to the Covid-19 outbreak, please call HMRC’s dedicated helpline: 0800 0159 559. If you’re worried about a future payment, please call nearer the time it’s due.
