1. End of VAT Deferral Period 2. Furlough & Self-employed Income Support Mis-claims Investigations
VAT Deferral Period Ending
As you'll be aware, certainly if you read our previous newsletters, one of the support measures introduced by HMRC was to allow VAT-registered businesses to defer VAT payments due between 20th March 2020 and 30th June 2020 until up to 31st March 2021. As the deferral period ends on 30th June VAT payments due after that date must be paid as normal. This means you will need to:
- set-up any cancelled direct debits in sufficient time to allow HMRC to take any payments due (this means at least 3 working days before submitting the VAT return)
- submit VAT returns as normal
- pay any VAT due in full
If you are unable to pay any VAT due then you should contact HMRC as soon as possible to explore the time to pay options available. Please speak to us if you would like us to help you with this.
Furlough Mis-claims Investigations
There has been quite a lot in the media in relation to possible fraudulent claims being made by businesses under the Job Retention - or furloughing - Scheme. It has now been announced that HMRC is seeking to have fast-tracked legislation put in place to enable it to investigate claims made under the scheme to confirm that all grants have been paid correctly and that they have all been used to pay workers' wages. Any organisation caught deliberately defrauding the scheme would face a financial penalty and HMRC would be able to recoup overpaid grants through income tax assessments.
The draft legislation would allow employers a 30-day amnesty to notify HMRC if they believe they have been overpaid monies through the scheme or if they have not used the grants correctly, that is to pay their workers. The legislation would also give HMRC the same powers to recoup grants incorrectly paid under the Self-employed Income Support Scheme. The legislation also includes powers to allow HMRC to pursue company office holders where businesses become insolvent.
If you believe that you may have been overpaid under either the Job Retention or Self-employed Income Support Schemes or that the money you received was not used correctly to pay your workers' wages then please let us know as a matter of urgency and we can help you to address the position with HMRC. It is important to appreciate this doesn’t just apply to deliberate fraud but also to incorrect grant claims so if you believe that an amount claimed was incorrect for whatever reason please let us know. This applies to claims which we filed for you or for any claim(s) which you may have filed yourself.
Once we have more information on the legislation we will let you know.