HMRC launches online application for time to pay arrangements
HMRC has launched an online application process for VAT time to pay arrangements. Is this option available for your business?
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HMRC clarifies treatment of averaging relief under MTD IT
HMRC has updated its guidance to explain how averaging relief claims will operate under Making Tax Digital for Income Tax (MTD IT). The clarification addresses concerns about how farmers and creators will claim relief once quarterly reporting becomes mandatory. What has changed?
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Double up on the employment allowance
You’re the sole shareholder of a limited company which employs several members of staff. You’re working on plans to start another business with an ex-colleague. Can both businesses benefit from the full employment allowance (EA)?
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VAT cut for children's holiday activities over summer
The government has announced a temporary reduction in the rate of VAT applying to certain children's holiday activity programmes during the summer holidays. The measure is intended to help families with childcare costs during the school break. What has changed?
Due to the new service, eligible businesses no longer need to call HMRC and plead for, or justify, an extension to their VAT payment deadline. However, it is necessary to take action swiftly, if you are struggling to pay. A business can set up its VAT payment plan online if:
- the latest VAT return has been filed
- less than £20,000 is outstanding
- the request is made within 28 days of the payment deadline
- it does not have any other payment plans or debts with HMRC; and
- it plans to pay off its debt within six months.
Ineligible businesses can still contact HMRC to agree a payment plan, but will likely need to justify the need to do so. Note that late payment interest will still be charged, and, as interest rates are increasing, paying sooner rather than later is recommended wherever possible.
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