VAT-registered businesses can apply a temporary reduced VAT rate of 5% to certain supplies relating to:

• hospitality
• hotel and holiday accommodation
• admissions to certain attractions

The temporary reduced rate will apply to supplies that are made between 15 July 2020 and 12 January 2021.

Check if you can temporarily reduce the rate of VAT on your supplies (21 July 2020)

The Scottish Government has announced a £2.2 billion support package for business. (18 March 2020)

Read full guidance on non-domestic rates (business rates) for 2020-21 (13 July 2020)

This includes:

Rates relief for all businesses

All non-domestic properties in Scotland will get a 1.6% relief. This relief effectively reverses the change in poundage for 2020-21.

You do not need to apply for this relief – it will be applied to your bill by your local council.

Rates holiday for 2020/21 tax year for specific sectors

• Retail, hospitality and leisure businesses will get 100% rates relief
• To get this relief, a property has to be occupied. Properties that have closed temporarily due to the government’s COVID-19 advice will be treated as occupied.
• Scottish airports will get 100% rates relief for a year, as will organisations providing handling services for scheduled passenger flights to Scottish airports
• Due to the unique role that Loganair plays in providing connectivity to the Highlands and Islands, they will also get 100% rates relief for a year. No other airline will receive rate relief in Scotland.
• Any organisations providing a "handling service" at Scottish airports are eligible. Handling services are defined as doing or more of the following:
  • De-icing
  • Re-fuelling
  • Moving aircraft
  • Waste servicing
  • Allocation of seating
  • Handling of baggage
  • Supervision of boarding

You do not need to apply for this relief – it will be applied to your bill by your local council.

Small Business Bonus Scheme

Provides relief to businesses with properties in Scotland of which the combined rateable value is £18,000 or less.

Where the cumulative rateable value of business properties falls between £18,000 and £35,000, the scheme will also offer 25% relief to individual properties with a rateable value £18,000 or under. 

Read full guidance on the Small Business Bonus Scheme (22 September 2020)

Payment deferral

If you're struggling to pay your non-domestic (business) rates bill you should contact your local council and ask them about your payment options.

Support for water bills

The following changes are effective immediately:

• Scottish Water has agreed to suspend pre-payment charges for licensed providers for two months, beginning with the April payment. This means providers – who provide water to businesses – can be flexible with their customers at this time.
• The Central Marketing Agency will also introduce other measures to support the market by suspending all performance standard charges to ensure licensed providers can focus on supporting customers

Comprehensive details of the package will be set out by the industry in a further letter to licensed providers.

Businesses should liaise directly with their water services supplier.

Read the full news story on the Scottish Government website (23 March 2020)

HMRC Time to Pay Service

Get support to pay your tax bill - all businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible for tax relief help through HMRC.

These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.

If you're concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 015 9559.

Lines are open from Monday to Friday, 8am to 8pm and on Saturday, 8am to 4pm.

HMRC will discuss your specific circumstances to explore:

• Agreeing an instalment arrangement
• Suspending debt collection proceedings
• Cancelling penalties and interest where you have administrative difficulties contacting or paying HMRC immediately

Tips for being routed through to the right person

On ringing the helpline, you will be met with a few options …

The first option you should select is the following:

‘if you have missed a tax payment or you might miss your next payment due to COVID-19 or you wish to discuss an existing payment arrangement you have in place, please press 1 …’

You will then be offered a new set of options and you will want to pick the one that’s says…

‘for Customs, Fuel, Gambling, Alcohol, Tobacco or Environmental taxes/duties press number 5’.

This should route you through to the right Debt Management Team where you can discuss your specific issue.

Deferral of Valued Added Tax (VAT) payments

If you're a UK VAT-registered business, with a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to:

• Defer your VAT payment up to 31 March 2021, or
• Pay the VAT due as normal

What's not covered

• It does not cover VAT Mini One Stop Shop (VAT MOSS) payments
• You still need to submit your VAT returns on time
• HMRC will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement
• VAT refunds and reclaims will be paid by the government as normal

Next step

If you chose to defer your VAT payment, you must pay the VAT due on or before 31 March 2021.

You do not need to tell HMRC that you are deferring your VAT payment.

Customers who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. Please do so in sufficient time so that HMRC do not attempt to automatically collect on receipt of your VAT return.

VAT payments due following the end of the deferral period will have to be paid as normal. Further information about how to repay the VAT you’ve deferred will be available soon.

Paying your self-assessment tax bill 

Income tax self-assessment payments due on 31 July 2020 can be deferred until 31 January 2021.

Am I eligible?

You are eligible if you are due to pay your second self-assessment payment on account on 31 July 2020.

You do not need to be self-employed to be eligible for the deferment.

The deferment is optional.

If you are still able to pay your second payment on account on 31 July 2020, you should do so.

Next step

This is an automatic offer with no applications required.

No penalties or interest for late payment will be charged if you defer payment until January 2021.

During the deferral period you can set up a budget payment plan to help you pay the deferred payment on account when it comes due.

Submit your completed forms online. Companies House has set up a temporary service, allowing businesses to upload and file documents online during the coronavirus outbreak. This is part of ongoing work to make filing documents easier and to protect staff from handling paper documents. (8 October 2020)

Be sure to check your filing deadline and file online to avoid delays. Companies House has reduced staff due to coronavirus restrictions, so it is taking longer to file documents sent by post. (8 October 2020)

Guidance on deadline extensions for filing your accounts and other measures taken by Companies House to support businesses during the pandemic is available. This runs until 10 October 2020. After this date, normal processes will resume. (24 September 2020)

Got financial difficulties?

How to apply for breathing space to consider a rescue plan for your company, under measures to support companies and other types of business in financial difficulty. (26 June 2020)

HM Treasury and HMRC have extended the deadline for certain tax policy consultations by three months. This is to allow stakeholders affected by COVID-19 extra time to submit their responses.

View the full list of extensions (29 April 2020)

The UK Government invited views on draft legislation which will introduce rules on the taxation of coronavirus (COVID-19) business support grants.

These measures mean that income from these grants would be taxable.

It will also give HMRC the ability to recover payments under the scheme to which recipients were not entitled or that were not used for the intended purpose.

The consultation is now closed and results will be published soon. Check back for updates on the UK Government site. (12 June 2020)