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COVID-19: FAQs for CIS contractors

David McManus

David McManus | Personal Tax Manager

Wednesday 3rd Jun, 2020

If you’re looking for extra information with regards to the financial support measures available to CIS / Self-employed contractors, you can do so in our guidance page. Below we answer some of the specific questions sent in to us by our CIS / Self-employed contractors.

If you aren’t able to continue paying them as a result of the COVID-19 pandemic’s effect on your company’s work, you should be able to get support through the Coronavirus Job Retention Scheme (CJRS), further details can be found on our CIS/Self-employed guidance page.

You can defer any VAT payment which falls due in the period from 20 March to 30 June 2020 until 31 March 2021. You should file your VAT return as normal. Further information can be found on our CIS / Self-employed guidance page.

If the payment cannot be made in full by 31 March 2021, HMRC will allow you to set up a payment plan to pay the amount over the course of the 2021/22 tax year.

Assuming that you have filed your 2018/19 Tax Return, you should be able to benefit from the Self-Employed Income Support Scheme (SEISS), further details of which can be found on our CIS / Self-employed guidance page. This scheme will include a taxable, non-repayable grant of up to 80% of trading profits where these profits are less than £50,000 in the 2018/19 tax year or less than £50,000 per annum averaged over the last 3 tax years.

Yes. The tax is still payable but the Government have said that this second payment on account of your 2019/20 tax liability can be deferred until 31 January 2021.For those taxpayers who have to make payments on account this will effectively be the balance of tax they need to pay for the 2019/20 tax year. Further details of which can be found on our CIS / Self-employed guidance page.

In September 2020 it was announced more time to pay taxes due in January 2021 will be granted, with tax payers being allowed to secure a plan to pay amounts due over a period of 12 months instead.

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