Self-Assessment Income Tax
Self-assessment income tax payers will be able to defer tax payments to January 2022.
This is an extension from that initially announced moving the payment on account due by 31 July 2020 to 31 January 2021.
The VAT cut for tourism and hospitality industries to 5% will be extended from January 2021 to 31 March 2021.
In addition, businesses who deferred their VAT liabilities which were due by 31 March 2021 will be able to pay this in 11 smaller interest free instalments. This will have a significant impact on the cash flow of small and medium businesses.
PAYE and Corporation Tax
There are no changes to the due dates for PAYE and Corporation Tax. Interest is currently being charged by HM Revenue & Customs for late payment.