The next few weeks will see a number of the government coronavirus support schemes being wound down. In particular, the following changes should be noted:
Deadline for applications for interest free deferral of VAT
21st June is the deadline for applying to pay VAT, which was deferred from the February, March or April 2020 VAT quarters by direct debit. This is known as the VAT deferral scheme and although applications are accepted automatically, a business still has to apply to join the scheme. Under the scheme, HMRC will allow the outstanding VAT to be paid by direct debit over the period to February 2022 on an interest-free basis.
Most businesses which deferred their VAT will have already paid it to HMRC or will have joined the scheme. Businesses which have not are required to join the scheme themselves (Harts as agents are not permitted to do it on your behalf). The scheme can be accessed at:
Click here for information on Deferral of VAT Payments
HMRC will also allow businesses to apply for time to pay, potentially over a longer period than permitted under the VAT deferral scheme, until 30 June 2021.
However HMRC have noted that if these deadlines are missed and the deferred VAT has not been paid by 30 June, then interest and penalties are likely to be charged.
Changes to the furlough scheme from 1st July 2021
As a reminder, employers with staff on furlough will be required to pay 10% of their wages for unworked hours from 1st July 2021. This is in addition to paying the employer NIC and pension contributions.
The employer contribution is due to rise to 20% from 1st August 2021.
All other aspects of the furlough scheme, including the ability to flexibly furlough employees, remain the same.
Accounts filing deadlines
We would like to take the opportunity to remind all company directors that the Companies House filing deadline for limited company accounts has been reduced back to 9 months from the company’s year-end. The 12 month filing period was part of the government’s coronavirus support package and has now been withdrawn.
This means that companies with a year end of 30 September 2020 are due to file their accounts by 30 June 2021.
Companies with a 31st October 2020 year end are required to file by 31st July 2021 and so on.
Late filing penalties of at least £150 are now being applied to those who miss the statutory filing deadlines.
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