COVID-19 VAT Payment – Deferral

We provided an update previously that the UK Government was allowing VAT registered businesses to defer the payment of VAT due from March 21 to 30 June, due to COVID-19.  This covered VAT returns with a period end of 31 March, 30 April and 31 May.

The Government has not extended this further so any business that has taken advantage of the deferral will need to reinstate their direct debit with HMRC well in advance of their next return being due or pay their VAT to HMRC manually.  Those paying manually must make the payment by close of business on the 7th of July (for VAT returns to the period ending 31 May).

For businesses who have deferred VAT payments, this will need to be paid to HMRC by 31 March 2021 so this will have to be factored into cashflow planning.  If any business is concerned about their ability to pay this or subsequent VAT debts it should contact HMRC to arrange a time to pay arrangement.  Please feel free to contact our VAT team if you have any queries about the COVID-19 VAT Deferral at VAT@chiene.co.uk

COVID-19 – Resources available to the charity sector

Just a reminder that there are a number of different resources that have arisen associated with COVID 19, to assist the voluntary sector. Generally, these comprise grants, loans, and in some cases tax reliefs.

Grant funding

As access to grants is changing on a regular basis, the best sources of information are representative bodies, membership bodies, and regulators.

For example, the Scottish Council for Voluntary Organisations (SCVO) has an excellent hub here.

Other funding resources are available to specialist sectors such as Heritage organisations here.

As part of the application process for some of these resources, it can be necessary to provide financial information. If you are having difficulty in accessing or extracting the right financial information from your organisation’s records, or need assistance in analysing or presenting it please contact our specialist COVID team at covid@chiene.co.uk.

Trading entities and certain third sector organisations may be eligible for rates related grants and reliefs – more detail can be found here.

We have also been assisting many of the clients that we already provide payroll services to with operating the Coronavirus Job Retention or “furlough” scheme, and for help with this, please contact our payroll team today at covid@chiene.co.uk, even if you are not a current payroll client.

Loans

For loan financing, our Corporate Finance team is able to provide assistance with the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loans, which charities can be eligible for. Further details are available on the C+T website here.

Loans are also available to the voluntary sector via the Scottish Government’s Third Sector Resilience Fund.

Tax reliefs

Our VAT team has been advising our charity clients on matters such as deferral of VAT payments due, deferral of planned MTD changes, zero rating of PPE, and the recent acceleration of the zero rating of electronic publications. The newest edition of the Chiene + Tait VAT Matters Newsletter outlines a number of these areas. Visit our publications page here.

There has been some good news in respect of Gift Aid. Catriona Finnie in the Chiene + Tait tax team provides more details here.