Deferral of VAT payments due to coronavirus (COVID-19)

Deferral of VAT payments due to coronavirus (COVID-19)

Deferral of VAT payments due to coronavirus (COVID-19)

On 20 March 2020, the Chancellor announced a temporary deferral of VAT payments due between 20 March 2020 and 30 June 2020 to help businesses manage their cash flow.

If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you can choose to:

  • Pay the VAT due as normal.
  • Defer the payment until a later date.

Please note that the deferral does not cover VAT MOSS or import VAT and you will still need to submit your VAT returns to HMRC on time. 

What happens if I choose to defer paying VAT?

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 and you don’t need to inform HMRC about deferring your VAT payment.

Important – cancellation of Direct Debit

If you wish to defer your VAT and your payments are normally paid by Direct Debit, then you should contact your bank to cancel your Direct Debit as soon as possible to avoid automatic deductions from HMRC.

HMRC will provide further information about how to repay the deferred VAT. 

If you have any questions regarding this or need help submitting your VAT return, please contact us or send us an email info@tbaccountantsuk.com. We are ready to help.

 

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