Mel’s COVID-19 Update: 25th January 2021
During COVID-19 I want to ensure that everyone is as up to date as possible with regards to Government changes and support that impacts businesses. Please note that this update is correct as of date of publishing (25th January 2021).
Below is a weekly roundup of Government supports for businesses and individuals in the UK.
Please talk to us if you need help in applying for Government support.
Pay VAT deferred due to coronavirus (COVID-19)
The guidance on how to pay VAT payments deferred between 20 March and 30 June 2020 has been updated with an added section on ‘Correcting errors on your VAT returns relating to the VAT payments deferral scheme’, including information on how to defer any extra payments resulting error corrections and HMRC VAT assessments.
If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you can:
- pay the deferred VAT in full on or before 31 March 2021.
- opt into the VAT deferral new payment scheme when it launches in 2021.
- contact HMRC if you need more help to pay.
The online opt in process will be available in early 2021 and you must do this yourself.
Instead of paying the full amount by the end of March 2021, you can make up to 11 smaller monthly instalments, interest free. All instalments must be paid by the end of March 2022.
The scheme will allow you to:
- pay your deferred VAT in instalments without adding interest.
- select the number of instalments from 2 to 11 equal monthly payments.
To use this scheme you must:
- still have deferred VAT to pay.
- be up to date with your VAT returns.
- opt in before the end of March 2021.
- pay the first instalment when you opt in.
If you opt into the scheme, you can still have a time to pay arrangement for other HMRC debts and outstanding tax.
How to treat certain expenses and benefits provided to employees during coronavirus (COVID-19)
The guidance on taxable expenses and benefits when they are paid to employees because of coronavirus and how to report them to HMRC has been updated to confirm that if an employer is providing antigen testing kits to employees, outside of the government’s national testing scheme, either directly or by purchasing tests that are carried out by a third party, no Income Tax or Class 1A National Insurance contributions will be due. Similarly, employers and their employees will not be liable to any Income Tax or National Insurance contributions, where an employee receives money from their employer for obtaining a test.