Deferred VAT Payments
Support for businesses through deferring VAT
HMRC will support businesses by deferring Valued Added Tax (VAT) payments for 3 months.
VAT
For VAT, the deferral will apply from 20 March 2020 until 30 June 2020.
We have now had clarification from HMRC via WebChat today (25 March 2020) that the following period ends will be affected:
- 29 February 2020 - Due to be paid to HMRC by 7 April 2020
- 31 March 2020 - Due to be paid to HMRC by 7 May 2020
- 30 April 2020 - Due to be paid to HMRC by 7 June 2020
All of the above period ends will be able to defer their VAT payments due until 2021.
Direct Debits
Clients who normally pay their VAT to HMRC via Direct Debit (DD) are advised to cancel their DD with their business bank, if they are unable to pay by the due date. We would advise clients to do so in sufficient time, so that HMRC do not attempt to automatically collect on receipt of your VAT return.
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.
* The end of the 2020-2021 tax year has been confirmed by HMRC to be 31 March 2021