A major concern for almost all businesses at the moment is the economic impact of the Coronavirus. Governments have realised that all businesses, regardless of size, urgently require more support during these times of uncertainty if they are to avoid permanent closure or bankruptcy.
The government recently announced a number of measures to provide businesses with additional financial support and to ease the tax burdens for the next few months.
VAT deferral period
From 30 March 2020 until 30 June 2020 businesses will not have to make VAT payments and they will be given an extended time to pay any liabilities that may have accumulated during this deferral period.
This measure applies to all businesses regardless of size and will apply automatically - there is no requirement to apply.
Income tax payments
Self-Assessment payments due on 31 July 2020 will be deferred until 31 January 2021, which will lessen the financial burden on those who are self-employed and struggling at this time.
In addition, HMRC have set up a dedicated telephone number for businesses that cannot afford to pay their tax bills at this time. HMRC have stated that they will be happy to discuss instalment arrangements for any struggling businesses.
There will be an extension of the business rates holiday to all businesses in the retail and hospitality sectors regardless of the rateable value. This means that these businesses will have no business rates to pay for the next 12 months.
Get in touch
Please get in touch with a member of our teams if you require assistance with anything mentioned above.
Please get in touch if you would like any further advice.