Coronavirus: delaying your VAT payments

Many businesses are concerned about VAT payments becoming due in very difficult business circumstances and HMRC have announced a special coronavirus helpline to discuss all tax payments.

The number is 0800 0159 559 and our recommendation is that all businesses concerned about tax payments should call to discuss potential deferral of payments.

Key issues to stress when speaking to HMRC are:

• If your business is in one of the mostly badly affected sectors such as catering and hospitality then it is important to make HMRC aware of this.
• Other businesses can still contact the helpline and should be ready to set out the impact of the corona virus in their own circumstances.
• HMRC are likely to require more information about the tax liability and the business’s financial position, such as cash reserves and overdraft availability.
• VAT returns are still likely to be required in order for HMRC to quantify the amounts which have been deferred.

If you have direct debit arrangements with HMRC for tax payments you may need to review these in order to avoid unexpected payments being taken.

Please contact your usual Bishop Fleming contact to discuss further.