Changes to business rates, VAT, tax and accounts during coronavirus
Includes Scottish Government relief measures on business rates, temporary changes to VAT and a dedicated HMRC helpline if you need support to pay your tax bill.
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 31 March 2021.
Check if you can temporarily reduce the rate of VAT on your supplies (21 July 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)
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, contact HMRC’s dedicated helpline
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)
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)