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UK: Tax relief includes deferred tax payments (COVID-19)

UK: Tax relief includes deferred tax payments

In the United Kingdom, deferred due dates for paying certain taxes are part of the tax relief measures provided in response to the coronavirus (COVID-19) pandemic.

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Income tax payments that are due 31 July 2020 may be deferred until 31 January 2021, without penalties or interest for the late payment of income tax. This relief is applicable for professional services firms and fund management firms, and the deferment is optional.

Regarding value added tax (VAT), payments of VAT due between 20 March and 30 June 2020 can be deferred and paid by the end of the tax year (31 March 2021). This relief, however, does not apply to VAT payments under the “Mini One Stop Shop” (MOSS) scheme under which VAT is reported and paid on sales of digital services to consumers in the EU. Also, VAT returns must still be timely filed during this period.

Taxpayers may submit requests to defer other tax payments, including corporation tax and payroll taxes (such deferrals generally are available for a period of three months).

There is a 12-month business rates holiday for all retail, hospitality, and leisure businesses in England and Scotland for the 2020 to 2021 tax year. This relief applies for estate agents, lettings agencies, and bingo halls that have been required to close due to COVID-19. In Northern Ireland, no rates will be charged for April-June 2020 for all business ratepayers (excluding public sector and utilities). Distressed businesses may also be able to request “hardship relief” with their local authority.


Read a March 2020 report [PDF 35 KB] prepared by the KPMG member firm in the UK that provides more information about tax and economic relief measures 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

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