Tax & admin 14 December 2020

Managing your tax liabilities so that it doesnt kill cashflow

Business man paying taxes
Karen Pearson discusses options available for personal and business taxes.
Karen Pearson, Director of Jackson & Green Accountants, joins Sue Gee, from?Prosper?, to discuss all things tax for the upcoming months, including VAT post Brexit.

After a difficult year for many SMEs, sole traders and freelancers, Pearson takes viewers through the options available for personal and business taxes.

With useful information about how to handle HMRC to get the outcome you need, this webinar contains invaluable information for anyone with questions about how to make sure they are up to date with their taxes, and stay on the right side of HMRC.

“It’s been a dreadful year, I think we all have to acknowledge that and HMRC do as well and that’s really important. We’ve also got companies and individuals who are heading towards significant tax liabilities over the next couple of months, and it’s knowing what they can do, where they can go to get help.”

Topics Pearson covers include:

Self-Assessment

If you cannot pay your 5th April 2020 tax bill in full by 31st January 2021, either:

  • Call HMRC on their Self-Assessment Payment Helpline: 0300 200 3822
  • Set up a payment plan online
You can set up a payment plan online through your Government Gateway and spread the cost of your latest Self-Assessment bill if:

  • you owe 30, 000 or less
  • you do not have any other payment plans or debts with HMRC
  • your tax returns are up to date
You can choose how much to pay straight away and how much you want to pay each month. You will have to pay interest, currently 2.6%.

You do not need to contact HMRC if you set up a payment plan online.

“I can’t stress enough that HMRC want to work with you, what they don’t like is people ignoring them.”

VAT

If you deferred VAT between 20th March and 30th June 2020 and still have payments to make, you can:

  • pay the deferred VAT in full on or before 31st March 2021
  • opt in to the VAT deferral new payment scheme when it launches in 2021
The online opt in process will be available in early 2021. Your accountant cannot do this for you, you must opt in 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
  • be able to pay the deferred VAT by Direct Debit
If you opt in to the scheme, you can still have a time to pay arrangement for other HMRC debts and outstanding tax.

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Business Law & Compliance