Tax Deferrals Announced In The Winter Economic Plan

Announced in the Winter Economic Plan by Chancellor Rishi Sunak, businesses that are struggling with cashflow, who deferred paying VAT in March to June 2020, can now spread their payments into eleven interest-free installments ...

This can be paid during the financial year of 2021/22 rather than the end of March 2021 which was originally announced. All businesses that used a VAT deferral can use the new payment plan, though they will have to opt into the scheme.

"Self-Assessment taxpayers will also be given more time to pay!"

Taxes are due in January 2021 for the 2019/20 tax year, and this deferment builds on the original July 2020 payment on account. Those taxpayers with up to £30,000 self-assessment liabilities can use the Time to Pay facility to create their own plan over 12 months.

Also announced by the Chancellor was the extensions to the temporary VAT reduction from 20% to 5% for businesses in the hospitality and tourism industry. This scheme now runs until the 31st March 2021, and although not strictly a deferment, it is worth including in this blog post as a useful piece of legislation.

If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.