VAT Payments

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VAT payments are being deferred by 3 months. I believe that we still file returns in the usual way. This applies from now until 30 June 2020. My understanding is that you can either pay (if you can afford it) or you can cancel your payment. If you don't want to pay and have a direct debit in place, my suggestion is to make sure the DD has been cancelled. But you will need to put a diary note in place after 1 July 2020 to reinstate the DD.

VAT

For VAT, the deferral will apply from 20 March 2020 until 30 June 2020.

Eligibility

All UK businesses are eligible.

How to access the scheme

This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.

Comments

  1. Matt Parrett - Tax Shop Accountants24 March 2020 at 23:14

    Whilst they originally said the deferral is an automatic, it now says you need to cancel your DDs

    "Customers who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. Please do so in sufficient time so that HMRC do not attempt to automatically collect on receipt of your VAT return"

    ReplyDelete

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