Set up a payment plan for your taxes with HMRC during Covid-19

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.