22nd February 2021
Here’s our latest accountancy advice on updates to government COVID-19 support schemes and you’ll be pleased to know there is some light relief to help businesses …
There’s another reason to remember 1 April, other than it being April Fool’s Day! The government has given those who pay tax via Self Assessment until then to either make payment or set up a payment plan (Time to Pay arrangement) – and they won’t incur a late payment penalty. So, it’s worth doing it by midnight on 1 April and you won’t be charged the initial 5% late payment penalty.
The payment plan can be set up online and allows you to pay in monthly instalments until January 2022.
If your business is affected by the COVID-19 pandemic, you can contact HMRC for help and support on 0300 200 3822.
If your business deferred paying VAT due in the period from 20 March to 30 June 2020, did you know that you can opt to pay it back in monthly instalments? You can join the VAT deferral new payment scheme, which is interest free.
If you don’t want to pay the deferred VAT in full, on or before 31 March 2021, this might be an excellent option for you.
The new scheme lets you pay your deferred VAT in up to 11 monthly instalments, interest free. The service opens on 23 February and closes on 21 June 2021 and you choose the number of instalments, from 2 to 11, depending on when you join.
For example, if you join in March, you’ll be able to pay your deferred VAT in 11 instalments or fewer. If you join in June, you’ll pay 8 monthly instalments or fewer. Read more about this – it might be just what you need to give you a bit of breathing space!
Bounce Back loans have been a lifeline to some businesses who are struggling due to the COVID-19 pandemic. This month, the government announced that businesses that took out loans under BBLS will now have greater flexibility to repay them with Pay as You Grow.
If you don’t know about the BBLS, it was launched in May 2020 and the closing date for new BBLS applications is 31 March 2021. Small businesses can apply for a 100% state-backed loan worth up to £50,000.
The great news is that recent changes mean:
You can also make interest-only payments on Bounce Back loans for six months (you can use this option up to 3 times).
If you’d like further accountancy advice on these or other issues, please contact us!
Visits to our offices are now limited to the delivery and collection of records only.
Our switchboard is open but to safeguard our staff and to comply with Government COVID restrictions we are operating with minimal staff working in the office and the remainder working from home.
Thank you for your understanding. We wish everyone safe and well as we weather these difficult times together.