Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to ensure that interest is not charged on PAYE payments that are deferred as a result of the covid-19 outbreak.
The Government has announced an unprecedented package of support for businesses and individuals affected by COVID-19. This includes the deferment of VAT and Income Tax Self-Assessment payments for specified periods. Interest on these deferred payments will be waived.
All other taxes are required to be reported and paid on time, and interest continues to apply to late payments. HMRC have scaled up their Time to Pay service, which is available to any taxpayer in temporary financial distress as a result of COVID-19 and with outstanding tax liabilities. Time to Pay arrangements are tailored to the taxpayer and can include deferment of tax payments and an agreed time period to repay. They can cover any tax liability, including PAYE.
The Government has announced a range of other support for businesses, including grants for small businesses and government-backed loans that do not accrue interest for the first 12 months. Further information about HMRC’s dedicated COVID-19 support can be found by visiting the GOV.UK website.