Deferral of VAT payments due to Coronavirus
The Government have announced temporary changes to the VAT payments due between 20 March 2020 and 30 June 2020 to help businesses manage their cash flow during the COVID-19 pandemic.
The VAT payment deferral period ends on 30 June 2020. This means you’ll need to:
- Set-up cancelled direct debits in enough time for HMRC to take payment.
- Submit VAT returns as normal, and on time.
- Pay the VAT in full on payments due after 30 June.
Any VAT payments you have deferred between 20 March and 30 June should be paid in full on or before 31 March 2021. You can make additional payments with subsequent returns.
If you’re 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.
To find out more about the VAT adjustments and how you can defer payments, click here
We are here to help
Our team of experienced and qualified advisors are still in place to provide advice, support and provide recovery action where require.
At this very sensitive and worrying time for all we are keen to ensure that you have all the facts and support you need to make the very best decision for your business and your clients.