Struggling to pay taxes (whether it’s self assessment, corporation, or PAYE)

HMRC are adding a support helpline with an extra 2000 people to man the phones to assist with anybody worried about paying their taxes.  All useful numbers/web links are listed below.  Contact this helpline for advice.  They will put in place a payment plan and no interest charges will be due as long as you stick to the plan.

VAT

Anybody due to make VAT payments in April, May or June, payment can be delayed if required and will not be due until the end of the 20/21 tax year (So by 5th April 2021).  Anybody that receives a VAT refund will still receive this.  Again, VAT must still be filed on time, but the payment is not required.  Anybody who pays by direct debit usually is advised to cancel it if they intend to make use of the payment holiday.

Self Assessment Payment on Accounts – Due July 2020

Anybody that is due to make a payment on account in July, the payment has been deferred and is not due until January 2021.

Sick Pay for Employees

For businesses that run a payroll for less than 250 employees, the government will pay back statutory sick pay after the first day of sickness instead of the usual 3 up to 2 weeks.  It may take a few months to get this money back though and HMRC have stressed that it is important to keep records of Employee’s sickness due the virus.

For those businesses that have had to close, HMRC will pay 80% of employee wages up to £2500 p/m.

Business Interruption Loan Scheme and Grants

This is a temporary scheme giving businesses access to bank loans and overdrafts to help get through this crisis.  Information will be available over the next couple of weeks from banks.

The grants for businesses that pay rates are available for retail, hospitality and leisure businesses are being issues by local councils and they will be in touch directly in due course.  If you have a rateable value of under £15,000 you will receive a £10,000 grant, a rateable value of bwteen £15,001 and £51,000 will receive £25,000.  These businesses will also receive a business rates holiday and new bills will arrive from your local authority.

Universal Credit

For the self employed for whom the virus will have an impact with regards to income, they can apply for universal credit to help with personal finances.  The government have relaxed the ruling on this for now and have brought down the minimum income floor for self employed.

Contact Details

Covid 19 HMRC tax payment deferrals helpline 0800 0159 559

Universal Credit 0800 3285644 or https://www.gov.uk/universal-credit