Assessment and VAT extensions granted

As part of the Chancellor’s winter economic plan, self-assessed income taxpayers can extend their outstanding tax bill over 12 months from January. Rishi Sunak also announced that restaurants, hotels and cinemas would continue to pay VAT at 5% rather than the usual 20% until March 31 next year. The Chancellor suggested after his Commons statement that there would have to be tax rises in the long term to help balance the books. He said: “We need to have an eye on our public finances and make sure we stay in a strong and sustainable position. I will have to make some of the difficult decisions in the future as we get back on a path to sustainability.” He went on to say that a smaller state would be ideal following the crisis: “The state being as nimble and agile as possible means it doesn’t have to raise as much tax revenue from people and people can keep more of the money they own. That is in general a good thing. As we get through this we can get back to a normal situation.”