Set up a payment plan for your taxes with HMRC during Covid-19
The government is helping businesses through the current situation by allowing you to defer tax payments.
Here’s what you need to know and what you need to do:
- If you have a VAT payment due before 30th June 2020, you can defer payment of this until 5th April 2021 without contacting HMRC.
- For all other taxes, HMRC has a dedicated phone line to agree payment plans for taxes:
- The number you need to call is 0800 015 9559
- A Director or Owner of the business has to call to discuss payment with HMRC
- This line is open from 8am to 8pm and the best times to call is first thing in the morning or after 5pm
- You will need to explain why your business has been affected by COVID-19 and therefore why you need to delay payment of your taxes.
- Only call in the week before the tax payment is due
- Please make sure that all of your tax filings are up to date
The information to have handy when calling HMRC:
- Company registration number
- Company address
- Company telephone number
- Company Unique Tax Reference – if discussing Corporation Tax
- PAYE and accounts office reference numbers – if discussing PAYE
A few practical points:
- PAYE payments may initially only be delayed for a month
- If you have any indication that you won’t be able to stick to the agreed plan, contact HMRC as they can renegotiate the dates and amounts
- HMRC may insist on Direct Debit collections
Some questions HMRC like to ask:
- Are you up to date with all other taxes?
- Has the company tried gaining sources of income or credit?
- What is the reason for the cash shortage?
- Have the directors taken dividends from the company?
- Can the company commit to some dates and amounts to pay?
Want to level up your understanding of tax? Download our Tax Guide for Business Owners today.