It’s been an unprecedented year and Covid-19 has been devastating for some businesses as they struggle to survive through an ongoing situation which is likely to be with us for some time to come.
Some people have lost their jobs with, unfortunately, more unemployment likely to follow in the coming months. The future remains unclear as we negotiate a second wave of the virus and the Government has stepped in with a number of packages designed to help businesses survive.
Support
One of the ways the Chancellor, Rishi Sunak, has helped is by allowing businesses to defer VAT payments, and it was recently announced that those who took the option to defer payments due between March 20th and June 30th will now be able to make smaller payments over a longer period of time.
It means that instead of making the full payment prior to the end of next March, businesses will now be able to make smaller payments, spreading the cost, until the end of March 2022 on an interest-free basis.
The move will be a welcome benefit to businesses who are trying to stay afloat during these most difficult of times and will allow for some much-needed breathing space when it comes to planning finances.
Opting in
Those businesses wishing to take advantage of the scheme will need to opt-in and for those that do, it means their VAT liabilities which were due between March 20th and June 30th will not now need to be paid in full until the end of March 2022.
Businesses that are able to pay their deferred tax from this period can still do so before the end of March next year – the extension just provides another option for those firms who may be struggling to meet the many financial obligations they have to survive the pandemic and stay in operation.
More information about the scheme will be available over the coming months and the Government is also providing additional reassurance to companies who may think they still won’t be able to make their VAT payments within the flexible time frame. Anyone with such worries is being asked to contact HMRC and talk through the options.
If you have any concerns or questions about this or any other financial issue, please give us a call on 01952 216872 or email us at info@kewaccountants.co.uk
