Tax Changes to Help your Cashflow

Defer VAT and income tax payments to reduce cash outflows and remember to cancel any direct debits set up to pay these bills.

Action Time to Pay (TTP) arrangements with HMRC PAYE, Corporation

Tax, VAT & Self Assessment. Contact HMRC Helpline 0800 024 1222

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/coronavirus-covid-19-helpline

Review forthcoming tax payments including those already made on account on 31 January for self-assessment or as corporation tax quarterly instalment payments (QIPs), to understand expected liabilities and see if a refund is due.

Business Rates Holidays

https://www.gov.uk/government/publications/business-rates-retail-discount-guidance

Review VAT on bad debts and see if VAT can be reclaimed. This applies to debts over six months old (from the date the payment was due) and less than four years, six months old. You must have paid the VAT to HMRC and written off the debt in your accounts. Where there is a significant risk of bad debts, eligible businesses might consider moving to VAT on a cash basis.

https://www.gov.uk/guidance/relief-from-vat-on-bad-debts-notice-70018

Reduce or reclaim tax for businesses who are projecting short or medium-term losses.

Limited companies can carry back losses 12 months and recover

a. corporation tax payments made in that earlier period

b. For LLPs, partnerships and sole practitioners, you can carry back losses to the previous year (12 months) which can potentially reduce future tax payments on account or obtain some recovery of income tax paid

c. For unincorporated partnerships that incorporate, if losses exist, there is potential to claim terminal loss relief which can enable losses to be carried back for over 12 months potentially enabling income tax to be recovered from earlier years

https://www.gov.uk/guidance/corporation-tax-calculating-and-claiming-a-loss

There are reliefs which can minimise tax liabilities including R&D, patent box or a number of creative industry tax reliefs.

Undertake a review of capital allowances to make sure the most effective rates are claimed on historic property acquisitions.