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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:
  1. If you have a VAT payment due before 30th June 2020, you can defer payment of this until 5th April 2021 without contacting HMRC.
  2. 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.

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