The Government measures to support the self-employed with VAT and tax are highlighted below.

VAT

  • VAT payments are deferred between 20 March and 30 June 2020, which will mean the deferral of one quarter’s VAT
  • VAT Returns must still be submitted by the normal due date
  • Deferral is automatic, you won’t need to apply for it and you will have until 5 April 2021 to settle the VAT liability for the deferred quarter
  • If you pay by direct debit you should cancel it as HMRC will not be suspending collection by that method.

Income Tax

HMRC has also confirmed that the second payment on account for the 2019/20 tax year, which would normally be due for payment on 31 July 2020, has been deferred until 31 January 2021 for self-employed individuals. Again this deferment will be automatic and doesn’t need to be applied for.

***Update 15 July 2020***

You have the option to defer your second payment on account for the 2019/20 tax year if you’re:

  • registered in the UK for Self Assessment, and
  • finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus

You can still make the payment by 31 July 2020 as normal if you’re able to do so.

Our website has a COVID-19 hub full of links and information that you may find useful.  If you have any queries, please get in touch with your usual Sagars contact or Helen Furniss.

Helen Furniss
Helen Furniss
Senior Manager
Helen specialises in looking after the personal tax affairs of our business clients including many from the legal profession such as solicitors, barristers, judges and QCs. She deals with personal accounts, tax returns, capital gains tax issues and tax planning matters.