VAT Deferral & Tax

VAT Deferral
HMRC have announced that a deferral will apply to VAT payments due from 20 March 2020 until 30 June 2020. They have annouced that all UK businesses are eligible, and no applications will be required to get the relief as this will be an automatic offer, meaning that 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 (i.e VAT quarters ending on or after 31 March 2021) to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.

The deferral relates only to the payment of the return, and therefore the return should be filed on time as usual. 

HMRC have announced that 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.

Useful Links

Time to pay: https://www.businesssupport.gov.uk/time-to-pay/ 
Tax deferral for the self employed: https://www.businesssupport.gov.uk/income-tax-deferral-for-the-self-empl...
VAT deferral scheme: https://www.businesssupport.gov.uk/vat-deferral/

Got a question about VAT?
If you have a question or would like to find out more information please call Jason Fayers on 0330 058 6559
Email Jason