As part of the government’s support for businesses during COVID-19, HMRC gave businesses the option of deferring their VAT payments if they were unable to pay on time, without incurring late payment interest or penalties.
Payment of VAT falling due between 20 March and 30 June 2020 can be deferred until 31 March 2021.
We’ve wrapped up everything you need to know about COVID-19 VAT Deferral.
· You must continue to file your VAT return on time, even if you defer payment.
· The option to defer paying VAT ends on 30 June 2020.
· VAT returns with a payment due date after 30 June must be paid in full, on time.
· If you haven’t deferred any VAT payments, you don’t need to take any further action.
· If you have deferred paying your VAT and normally pay by Direct Debit you should now reinstate it.You should do this at least three working days before submitting your VAT return in order for HMRC to take payment. For further details go to GOV.UK and search for ‘Pay your VAT bill’.
· Please do not call HMRC for more information on the above. Check out the link here to find everything you need to know.
· Any VAT payments you have deferred during this period should be paid in full on or before 31 March 2021.
· If you wish, you can still make ad hoc payments or additional payments with your subsequent VAT returns to reduce the amount outstanding.
· If you’re unable to pay the VAT due and need additional time to pay, please contact HMRC before the payment is due. For help, visit this page or call 0300 200 3835.
We will publish further updates and information as soon as we have it, via our blog or email updates for our clients. You can keep up to date via email or by following any of our social media.
In the meantime, if you have any questions about the scheme or anything else, please get in touch. You can also refer to our COVID-19 support page.
Thanks for stopping by,
The Business Hut Team