‘J’ is for Juggling your finances in the time of Covid-19

The building blocks of accountancy

Independent practitioners have been keeping specialist medical accountants busy with business-related queries during the pandemic. Julia Burn addresses some key issues.

Everyone’s finances are up in the air due to the pandemic but in uncertain times like these we must manage them as carefully as we can so that we all come out of this in the best shape possible.

The Government has announced various schemes to help individuals and businesses (see ‘Managing your business through Covid-19’) and many consultants and GPs will fall into one of these. 

One example is the option to defer tax payments, including both direct taxes and VAT.  

Any self-employed taxpayer with a personal tax payment due on 31 July 2020 will automatically have their due date for payment deferred until 31 January 2021.

And UK VAT registered businesses who have a VAT payment due between 20 March 2020 and 30 June 2020 have the option to defer that VAT to a later date.  

HM Revenue and Customs (HMRC) will not charge interest or penalties on any amount deferred in either scenario. Both schemes will assist those who are struggling with cash flow in the short term.

Time to pay 

In addition, HMRC is focused on the fact that many taxpayers will need Time To Pay (TTP). Hopefully that will mean it is possible to agree something sensible should cash flow be a problem.