Accura Accountants – Update
It does not appear that there is any further guidance to report emanating from HMRC, so let’s for now concentrate directly on you and your company/business.
VAT
If your business or company falls within the deferral periods, you do not have to apply or contact HMRC to request this deferment.
The VAT periods ending 31st March 2020 and 30th April 2020, both normally due (subject to electronic payments) 7th May and 7th June are now payable by 5th April 2021. VAT returns must be submitted as normal by the above payment dates.
Please do not treat deferral as carte blanche to breach statutes. It is likely that if you do not comply as normal, HMRC could refuse the deferral.
PAYE & NI
As yet HMRC have not given any instructions about deferral of deductions from staff wages.
No doubt, reasons for a lack of assistance in this area is because the money is in fact money held in trust based on deductions from staff wages. Technically these are not businesses funds. I appreciate that businesses pay National Insurance as employer, but to amend and allow retention of these monies is asking for too much complicated drafting of emergency rules and powers . Hence in my opinion is the reason no assistance has been forthcoming.
As and when monies are received based on the 80% maximum grant, the PAYE and NI as referred to in my previous emails should be paid as normal. Paid by 19th of the month following the 5th of month when deductions/wages are paid.
Example
For wages paid to 5th April 2020, payments of PAYE and NI should be paid by 19th April 2020.Based on current facilities offered by HMRC
A rhetorical question
What should a business do if due to current problems, one cannot pay past VAT/PAYE and NI?
Apply for a TIME to PAY arrangement (TTP).
Normally one would telephone HMRC and agree a period to repay monies owed but based on numerous attempts to contact HMRC with the potential of being on hold for many hours our suggestion (when requesting both time to repay a debt with a creditor/supplier or a TTP) is to do this in writing.
When writing to HMRC set out what is owed to date (out of scope of current deferment facility) and requesting a TTP. Copies of letters MUST be retained as evidence.
When requesting such assistance, give an indication as to how and when the business could repay the debt (obviously trying to gauge when business could get back on even footing).
This advice should be followed also with your trade creditors. To do so would show proactive administration of your business
To act now will demonstrate that you have tried to seek assistance and have not ignored and waited for HMRC to literally knock on your door before active requests are made. If businesses ignore my suggestions, in all probability HMRC will refuse assistance, be it now or later.
Accura Accountant’s directors and consultants are here to assist and protect your businesses. We are drafting appropriate letters for our clients and can assist with the submission relating to any business that wishes to delay VAT and PAYE liabilities due to date out of the scope of deferment offered.
We are also able to assist what is or will be required for bank guarantee loans.
I have been asked about claims under Job Protection scheme for controlling directors. My initial thoughts are that HMRC will not make such payment (80% of £25,000 capped) (subject to actual income appearing on PAYE submissions). However I do suggest that claims are submitted with staff furloughed. As I type this email ,Norway has just announced protection of Self-Employed which I believe controlling directors should or would come under this category.
I finish by advising all clients that it is necessary to protect your businesses via compliance of submission of VAT/ PAYE and Accounts with the ability to forward these to reports to your banks to take advantage of the businesses facilities being offered and those assisted by HMRC.
I repeat, be aware that every offer will be subject to the provision of information and full compliance.