As part of the Winter Economy Plan announced by Chancellor Rishi Sunak on 24 September 2020, the following measures were announced:
- VAT payments due between 20 March 2020 and 30 June 2020 that were deferred until 31 March 2021, can now be paid in eleven interest-free instalments. This will be an opt-in scheme, i.e. it will not be automatic. More details are expected to follow shortly.
- Those with Income Tax due under Self-Assessment on 31 January 2021 can pay their liability over a twelve-month period. It is unclear if interest will be charged, but we expect interest will apply at HMRC's statutory rate. This is currently 2.60%. The amount subject to this relaxation includes any payment on account deferred from 31 July 2020 to 31 January 2021 under the previous support measures. This will apply to those with a liability of up to £30,000, and we expect further eligibility criteria to be announced.
If you have any queries regarding the deferred payments, and whether you are eligible or should make use of them, just get in touch.