Dealing with HMRC over deferred VAT payments
Early on in the pandemic, HMRC confirmed that all payments of VAT due between 20 March 2020 and 30 June 2020 could be deferred until 31 March 2021, to help businesses manage their cash flow.
Many businesses took them up on this offer, but they do need to eventually be paid!
The next few months will be as big a challenge as anything so far seen in 2020 for many businesses.
Focusing on your cash position during the remainder of 2020 should be the top priority for company directors.
Now is a good time to review your existing business plan and incorporate the repayments schedule of any CBILS, bounce back loans or VAT payments due.
We are always proactive with our clients to ensure they are clear on the dates of the deadlines for payments to HMRC to avoid penalties.
A number of tax deadlines fall between now and March 31st including deferred VAT payments (made between March 20 and June 30), self-assessment income tax payments on account and potentially your corporation tax liability.
Given that these liabilities could become payable within quick succession it means that business owners should ensure they’ve got sufficient levels of cash in their business to enable the servicing of existing debts and tax bills leaving them to focus on maintaining and growing their business during 2021
