Further Deferrals & Extensions

VAT Cut for Hospitality Sector Continues

The reduction in VAT to 5% for the hospitality and tourism sector will be extended until 31 March 2021.

Deferral of VAT Bills

Up to half a million businesses who deferred their VAT bills will be given more breathing space through the New Payment Scheme, which gives them the option to pay back in smaller instalments. Rather than paying a lump sum in full at the end March next year, they will be able to make 11 smaller interest-free payments during the 2021-22 financial year.

Self-Assessment Taxpayers – Time To Pay Extension

Approximately 11 million self-assessment taxpayers will be able to benefit from a separate additional 12-month extension from HMRC on the “Time to Pay” self-service facility, meaning payments deferred from July 2020, and those due in January 2021, will now not need to be paid until January 2022.