I’m getting several clients asking about the Time to Pay eligibility for HMRC payments of tax, so I thought I’d share what HMRC are telling us:

Support for businesses paying tax: Time to Pay service

All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.

These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.

Am I Eligible? 

You are eligible if your business pays tax to HMRC and has outstanding liabilities

How Do I access the Time to Pay scheme?

If you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC’s dedicated helpline: 0800 0159 559.

HMRC have said they are getting that many calls that if you are worried about a future payment, please call them nearer the time, only call now for late or imminent payments due.

Some tax due have been automatically deferred by HMRC to help small businesses cope in these times:

Support for businesses through deferring VAT and Income Tax payments

HMRC will support businesses by deferring Valued Added Tax (VAT) payments for 3 months. If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.

VAT  

For VAT, the deferral will apply from 20 March 2020 until 30 June 2020. 

Am I Eligible?

All UK businesses are eligible.

How do I to access the deferring payments scheme?

This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.

Income Tax

For Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021.

Am I Eligible?

If you are self-employed you are eligible.

How do I access the deferred income tax scheme?

This is an automatic offer with no applications required.

No penalties or interest for late payment will be charged in the deferral period.