Postponement and tax planning after Covid


With the restrictions easing over the weeks and months to return, many companies will probably be seeking to get again on monitor, however till they’ll realistically accomplish that, monetary backing and cautious planning will probably be wanted. crucial to beat the top of the storm.

On the time of writing, we’ve been eagerly awaiting any bulletins the Spring Funds could convey, and questioning if the Chancellor will select to boost taxes – and the way – to make up for the deficit left by the monetary influence. of the pandemic.

The assist offered to companies and people has come at an enormous value and the federal government should fill that hole in some unspecified time in the future.

The constructive pre-budget information that enterprise homeowners may have welcomed is the power to stagger VAT deferral refunds.

Final yr, the federal government introduced that any VAT cost due between March 20 and June 30, 2020 may very well be postponed in full till March 31, 2021.

It was just lately introduced that these deferred funds, which had been beforehand due on the finish of March, might be additional deferred and the funds unfold over 12 months with out curiosity.

HMRC launched the brand new VAT deferral cost system on February 23, 2021, and it’s now open for purposes till June 21, 2021.

If what you are promoting needs to use for this system, you could have a web based authorities gateway account and be updated together with your VAT returns. You will need to additionally right any errors on the related returns earlier than making use of for the VAT deferred cost scheme.

Sadly, brokers can’t be part of this system on behalf of an organization, so it’s as much as the businesses themselves to affix this system.

For extra particulars on how one can be part of this system, please go to https://www.gov.uk/steerage/deferral-of-vat-payments-due-to-coronavirus-covid-19

The Chancellor’s new bulletins this week, alongside the federal government’s new roadmap to return out of the pandemic, will undoubtedly make enterprise homeowners focus firmly on sustainability, effectivity and survival on the earth. , dare we are saying it, post-pandemic. Tax money owed and contributions will probably be a significant component in future enterprise selections, particularly in mild of any anticipated modifications.

For assist and help with any tax planning points please name me on 01756 620000 or e mail [email protected]





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