The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note covers measures in place to allow taxpayers to defer VAT payments as a result of pressures faced due to the coronavirus pandemic.
For an overview of the impact of coronavirus on VAT more broadly, see the Coronavirus (COVID-19) and VAT ― overview guidance note.
Many businesses experienced a rapid and unexpected decrease in their revenue streams as a result of the coronavirus outbreak, and consequently suffered cash flow problems that impacted their ability to pay their VAT liabilities to HMRC. In light of this, businesses were allowed to defer VAT payments that fell due between 20 March 2020 and 30 June 2020.
In relation to the payments that have been deferred, HMRC presented taxpayers with three choices:
pay the deferred VAT in full on or before 31 March 2021
join the VAT deferral new payment scheme (see further below in this guidance note)
contact HMRC to discuss ‘time to pay’ arrangements (see further below in this guidance note)
Pay VAT deferred due to coronavirus (COVID-19)
The deferral was only in relation to the payment of VAT so it did not affect obligations to submit VAT returns on time.
Interest and penalties should not be charged on any amounts that have been deferred under this measure.
The deferment measure included all of the following kinds of VAT payments to HMRC:
payment for quarterly and monthly VAT returns ending February, March and April 2020
payments on account
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Why capital losses are importantCapital losses are usually set against the capital gains that arise in the same year as the loss, reducing the total taxable gains for that year. Losses not used in this fashion are normally carried forward to be set against the next available gains.However, in
RDEC ― large company R&D reliefSince 1 April 2016, or from 1 April 2013 by election, large company R&D relief is given through research and development expenditure credits (RDEC), which is a taxable credit payable to the company. As the credit is taxable, it is also sometimes called an above the
When does a trust come to an end?A trust may come to an end because it has run its course and comes to a natural end. If a trust has no assets , it ceases to exist. Alternatively, a trust ends because the trustees or beneficiaries decide to wind it up: the trustees distribute the assets by
Restriction of carry forward and carry back of trading lossesFollowing the extensive changes to the loss carry forward provisions introduced from 1 April 2017, the anti-avoidance rules restricting the offset of trading losses following a change in ownership were tightened up and extended.
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.