The Government recently announced a VAT payments deferral on 20 March to support businesses with cash flow during the COVID-19 pandemic.
We have published brief details below of what has now been confirmed to assist an understanding of how you go about ensuring the deferral of your next VAT payment should you chose to.
Should you require any further information, then please visit
https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
- Introduction
- If you are a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to:
- defer the payment until a later date;
- pay the VAT due as normal
- HMRC will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement.
- How Do I Ensure My Next Return Is Properly Deferred?
- You should continue to submit VAT returns as normal.
- You do not need to inform HMRC if you wish to defer payment of your VAT payment due between 20 March 2020 and 30 June 2020.
- You can opt into the deferral simply by not making the VAT payments due in this period.
- If you normally pay by direct debit you should cancel the direct debit with your bank
- This can be done online if you are registered for online banking.
- You should do so in sufficient time so that HMRC does not attempt to automatically collect on receipt of your VAT return.
- If I Choose To Defer Paying My VAT When Must It Be Paid By?
- If you choose to defer your VAT payment as a result of coronavirus (COVID-19), you must pay the VAT due on or before 31 March 2021.
- Do I Have To Automatically Defer?
- No, if you wish, you can continue to make payments as normal during the deferral period.
- What if I Am Due A Refund?
- HMRC will continue to pay repayment claims as normal.
- Does The Deferral Extend To The VAY MOSS Scheme
- The option to defer does not cover VAT MOSS payments.