Deferred VAT Payments
At early stages of the pandemic the Government announced that those who pay VAT could have the option to defer the payments until a later date. The Government have now announced that the ability to defer VAT payments will end on 30th June 2020.
This means VAT payers will 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 which have deferred between 20 March and 30 June should be paid in full on or before 31 March 2021. Additional payments can be made with subsequent returns.
UK VAT registered businesses who have a VAT payment due between 20 March 2020 and 30 June 2020, have the option to:
defer the payment until a later date
pay the VAT due as normal
HMRC have indicated that they will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement.
VAT payments you can defer
The following VAT payments can be deferred under the scheme:
quarterly and monthly VAT returns’ payments for the periods ending in February, March and April
payments on account due between 20 March 2020 and 30 June 2020
annual accounting advance payments due between 20 March 2020 and 30 June 2020
The deferral does not cover payments for VAT MOSS or import VAT.
Contact HMRC:
if you are unable to pay the VAT due and may need time to pay as soon as possible and before the payment is due
for advice and information on other support available
The announcement can be accessed here.
