Apr 09, 2020

The Government has announced a number of measures to help ease cashflow worries for businesses of all size, including self-employed people and contractors.

Here we outline the schemes which most likely to be relevant to you.  You may also find it helpful to read our article with tips on managing your personal finances.

Deferral of VAT payments
VAT payments due between 20th March and 30th June 2020 can be deferred to March 31st 2021. If you wish to defer payment, you do not need to do anything apart from cancel your direct debit, if you have one set up.

Although payment can be deferred, VAT returns must be made in the usual way. Please do ensure you keep your financial records up-to-date as we will process your VAT return in time for the usual deadines.

Deferral of self-assessment payment on account
Payments on account which would be due by 31st July 2020 can be deferred to January 31st 2021. If you do defer payment, do remember to plan for how you will ensure the cash is available for the new deadline. If you think you will have difficulty saving the money, you can access a budget payment plan – let us know and we will help you.

Tax payments
HMRC’s Time to Pay scheme enables you to negotiate additional time to meet outstanding tax liabilities. Arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. If you think you will need to use the Time to Pay scheme, please get in touch and we will help you to calculate what you owe.

Paying your bills
If you are concerned about being unable to pay any of your bills associated with your work ie utilities, broadband, insurance, it’s important to work out your incoming and outgoing money as soon as you can. If you are going to have difficulty paying bills, then please speak to your provider as soon as possible. Some providers do have plans in place to ease the pressure on customers through Coronavirus.

Welfare benefits

If you are entitled to Universal Credit, payments have been increased for the next 12 months by around £1,000 to help people whose income is affected by Coronavirus.

Here to help
We are here to help you manage through the Coronavirus pandemic. If you have any queries relating to your self-employment status or would like to find out more about any of the above cashflow schemes, please do not hesitate to get in touch.

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