How to get extra time to pay VAT and other HMRC taxes

You will no doubt be aware that HMRC offered businesses the option to defer their payment of VAT for the period up til the end of June (deferred til March 2021). And self employed taxes were also deferred from July 2020 til January 2021.

And the schemes have not been extended. Officially.

So this means that any tax owing from May’s VAT return will be due by July 7th. In theory.

Having looked into this for our clients, we have established that there is an option to discuss your payment with HMRC. And not be charged a late payment penalty.

AS LONG AS YOU CONTACT THEM IN ADVANCE OF THE PAYMENT DEADLINE.

It seems that you, or your accountant, can contact them. And there’s certain questions they are going to ask. And certain information you will need to have to hand.

So we wanted to share with you what those are and here’s a list to help you if you feel you are going to need to defer some or all of your payments moving forward.

N.B If you deferred payment and cancelled your direct debits, remember you will need to reactivate them if you are going to pay VAT in the usual manner from now onwards.

Key findings in summary:

• If you can offer to pay SOME of the amount you will receive a better reaction.
• AND YOU MUST DO IT PRIOR TO THE DEADLINE ( 7th of the relevant month).

Here’s the number to call

Payment Support Service
Telephone: 0300 200 3835
Monday to Friday, 8am to 4pm

Here’s the official line: “Because of coronavirus you may be able to delay (defer) some tax payments without paying a penalty. You can:

• delay VAT payments due before 30 June 2020 until 31 March 2021
• delay your Self Assessment payment on account due in July 2020 until 31 January 2021

Contact the HMRC coronavirus (COVID-19) helpline if you cannot pay any other tax bills because of coronavirus.”

 

Here’s the information you will need to have to hand

You’ll need to be able to give them/discuss:

• your UTR or VAT reference number (depending on which bill you are looking to discuss)
• the amount of the tax bill you’re finding it difficult to pay and the reasons why
• what you’ve done to try to get the money to pay the bill
• how much you can pay immediately and how long you may need to pay the rest
• your bank account details

Here’s the questions you might well be asked

• your income and expenditure
• your assets, like savings and investments
• what you’re doing to get your tax payments back in order

If you have any questions about this please get in touch with us on 01763 257882 or email david@theaccountancypractice.com

 

Here’s a link to the HMRC portal which explains all this, if you want to read the official line