Last updated: 01 April 2020

VAT Deferral Scheme. Government Guidance

00:00 – In a couple of months time. If you’re self employed, you’re going to owe a self employed tax payments. First of the 30, 1st of July. Now what the Johnson announced very early on, prime minister announced really early on was that he was going to allow deferral off that of that payment until January next year.

Now there’s a good thing about that. You may be paying interest by who. By the way, I don’t, we haven’t been cleared yet. However, when it comes to January next year, do you think you might have another tax bill to pay? I may not be such a high tax move because Covid a lockdown has really hammered most businesses, income and profits.

So chances are you’re not going to owe very much. And uh, in fact, the July one might need an appeal. Because, uh, you know, you’ve now so much less, you may need to put in a revised payment on account claim. If you don’t understand what I’m talking about. I don’t expect to jump.

01:00 – I’m just saying that so that you can go to your accountant or tax advisor and go, what’s a payment on account claim and how can I adjusted because my income is just shattered this year.

However, because it didn’t really happen until the end of March. It may not be relevant for you, but nevertheless, you may owe a January payment for the 2020 year plus the deferred July payment for 2020 on account, which may make that the cashflow hit. Now, I don’t know if they figured it out. I don’t know.

Have you figured it out? But that could be quite a large amount given that. The self employed, uh, income support scheme is taxable. So you can owe tax on that. So. I dunno. Well, you just need to look at your cash flow and planet, uh, and look at where the gaps may be and just be thinking as a family about it’d be talking to your professional advisor, your trusted advisor about it.

02:00 – Because it is so important to, to factor in because the last thing you want to do is come out of one frying pan and into a fire. Okay. That’s what I want. I don’t want for my clients and I don’t want for the business community. And if you’re self employed. There is a fighting chance that may happen if you’re not prepared, uh, financially or I, this is going to Silva wishing your wild.

Please be healthy, be safe, be isolated, and let’s save the NHS and let’s save lives. And for all those whose, whose loved ones are real, we’re still a passed away. My deepest sympathies. Having lost somebody very, very, very close to me some years ago. I know how difficult it is if you are in business and having to deal with the loss of someone.

03:00 –  So special. Alright. On that note, remember we’re doing these workshops. All this week, Oh, well, the oldest week this week, and all through April to help you gear up, get set, and go for growth when it comes to post lockdown coven world. Okay. In my view, we’ve got to factor into maybe a change world.

We’ve gotta be ready for it. Well until we get a chance to meet in one of those workshops, one of those Facebook lives, one of those a YouTube lives. I wish you all the best, every success to you and every piece of health way and everyone you know yourself best and take care goodbye.