Ryecroft Glenton (RG) is advising businesses that Her Majesty’s Revenue & Customs (HMRC) is open to offering deferred payment holidays on business taxes such as VAT during the Coronavirus emergency.
Through its regular interactions with HMRC, RG has already agreed VAT deferrals for business clients and is advising early engagement to put agreements in place.
Dan Cooper, Director at RG, said: “HMRC is showing its support to businesses by offering deferred payment holidays. We have spoken to HMRC regarding VAT, but we understand that it will be across the board for all taxes with small deferral periods achievable.
“For businesses that have just come out of a VAT period and are due to pay their liability, or have concerns about any tax payments, our advice is to speak to HMRC or your advisers as soon as possible.
“The key is to engage with HMRC quickly and not wait until after a payment deadline. This will enable an agreement to be reached, which is logged on the business’ file, which will prevent any debt chase.
“It is reassuring, based on the advice we have been given, that penalties and interest will not be applied to the deferred payment holiday period.
“We are engaging quickly on behalf of clients, including, for an example, reaching an agreement with HMRC for a three-month payment holiday for a client for VAT that is due this quarter.
“This takes them to the middle of July when their payment will be due. In addition, HMRC has confirmed, should they need a further extension, they will speak to us about a further deferral.”