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HMRC – VAT, IR35, PAYE

Coronavirus Business Support

This page helps businesses find out how to access the support that has been made available, who is eligible, when the schemes open and how to apply.

VAT and income tax payments

Support for businesses through deferring VAT and Income Tax payments

We will support businesses by deferring Valued Added Tax (VAT) payments for 3 months. If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.

VAT

For VAT, the deferral will apply from 20 March 2020 until 30 June 2020.

Eligibility

All UK businesses are eligible.

How to access the scheme

This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. VAT refunds and reclaims will be paid by the government as normal. Under MTD regulations returns still have to be submitted

Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period.

If you run a business or are self-employed and are concerned about paying your tax due to coronavirus, you can call HMRC’s helpline for help and advice: 0800 0159 559.

IR35

IR35 changes delayed due to coronavirus (COVID-19)

As announced by HMRC on 18 March 2020: changes to the off-payroll working regime will not take effect until April 2021 due to the coronavirus pandemic

In light of the coronavirus pandemic, changes due on 6 April 2020 will now be implemented from 6 April 2021, meaning that the existing off-payroll working rules will continue for a further year. This gives businesses a further year to make the necessary changes.

For those which have already made changes to reflect the new rules, HMRC has said that Status Determination Statements (SDS) will have no standing in law and will not be used as evidence in any enquiry dispute during the coming year.

The legislation implementing changes to off-payroll working is now expected to be published later this year and HMRC will be updating its Employment Status Manual to reflect this as soon as possible.

• For more advice and guidance visit ICAEW.com/IR35.
• More information and support on the coronavirus.

Existing off-payroll working rules that will remain in force until April 2021:

• Private sector: Where work is undertaken for a private sector engager, the worker remains responsible for determining the tax status of the contract and ensuring that the IR35 rules are applied to any payments made to their personal services company (PSC) if the work looks more like an employment contract.
• Public sector: Where work is undertaken for a public authority, the engager, rather than the worker’s PSC, is responsible for determining the tax status of the contract, employed or self employed, and if it looks more like employment, must ensure that any payments made to the worker under that contract are paid through a payroll.

Webchat

Advisers can only talk to you about problems paying your taxes due to coronavirus (COVID-19). This could be:

• Self Assessment
• VAT
• employers’ PAYE
• Corporation Tax

They will not be able to transfer you to another webchat team. Speak to an adviser.