The financial support offered by the Government through the VAT payment deferral scheme has come to an end. This period, which was intended to support businesses struggling with the impact of COVID-19, ended on 30 June 2020. You must now pay any VAT due after this date on time as HM Revenue & Customs (HMRC) may apply surcharges.
You should also ensure that you have the funds necessary to pay any VAT payments that have been deferred between 20 March and 30 June, as they will need to be paid in full by 31 March 2021.
If you are concerned that you may not be able to pay your VAT bill on time you should contact HMRC and ask for a time to pay arrangement. If you fail to do this and do not make a payment on time you may be penalised.
Amendments to HMRC’s civil information powers – New legislation will give HMRC powers to issue a ‘Financial Institution Notice’, that requires organisations, such as banks, to provide information about a specific taxpayer when requested.
This law will do away with the need for approval from an independent tax tribunal.
The Bill also includes a series of amendments to existing legislature aimed at tackling promoters and enablers of tax avoidance.
Alongside the Bill, the Government also launched several important consultations including:
Business rates review – HM Treasury will carry out a wide-ranging review of the business rates system, including a consideration of the strengths and weaknesses of the current system and the introduction of alternatives, such as dedicated property and online sales tax schemes.
R&D qualifying expenditure – HM Treasury will explore whether the scope of qualifying expenditure could be expanded to include data and cloud computing costs. However, the consultation also asks whether other qualifying expenditure should be restricted as a result to make the tax relief fairer.
Link: Finance Bill 2020-21