COVID19 – Deferment of PAYE

Tax Question

My client has asked if there is a scheme to defer payment of PAYE, National Insurance and CIS deductions under the emergency measures brought about by the COVID 19 pandemic. He has heard about the VAT deferral and the postponement of self-assessment payments on account on 31 July 2020.

Tax Answer

There is no such scheme and payments of PAYE, National Insurance and CIS deductions should be made by the appropriate due date.

However, if the business is struggling with these commitments, and approach could be made to HMRC for a time to pay arrangement to apply.

HMRC will discuss the specific circumstances to explore:

  • agreeing an instalment arrangement
  • suspending debt collection proceedings
  • cancelling penalties and interest where you have administrative difficulties contacting or paying HMRC immediately

The helpline number is 0800 024 1222.

Before calling it is best to be prepared and have a statement of assets and liabilities together with a projected cash flow forecast (including any future liabilities with HMRC arising in the future)

Failing this it may be possible to consider the Coronavirus Business Interruption Loan Scheme through the GOV.UK website.

If staff have been furloughed, consider making a claim for the grant available through HMRC.

If you are trading as a sole trader or partnership you may be eligible for a grant through the Corona Virus scheme for the self-employed, again full details on the GOV.UK website.

There are other schemes available and it is recommended that the GOV.UK website is regularly checked for any updates.

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