Last Friday the Government announced measures to support the self-employed with VAT and tax over the next few difficult months
- VAT payments are deferred between 20th March and 30th 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 5th 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
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.