We have received a bucket load of calls and emails in the past few days in regards to Deferring Vat Payments. The reason for this is due to HMRCs ambiguous & grey guidance provided on their website.
In light of this we have therefore been in contact with HMRC this
morning via WebChat to
confirm answers to the most common questions being asked; which are detailed below:
1)
Do I still have to submit my VAT
returns to HMRC?
Yes, all
VAT Returns are due to be
completed and submitted to HMRC as usual. VAT submissions are due to HMRC 1
month and 7 days after the Quarter End
2)
Which VAT periods can I defer
payment for my VAT?
The VAT deferral is automatically applied by
HMRC for any liabilities declared on the following 3 VAT Quarter Ends:
· Quarter Ended 29th February 2020
(Period covering 1st Dec 2019 to 29th Feb 2020, due to be
submitted and paid by 7th Apr 2020)
· Quarter Ended 31st March 2020 (Period
covering 1st Jan 2020 to 31st Mar 2020, due to be
submitted and paid by 7th May 2020)
· Quarter Ended 30th April
2020
(Period
covering 1st Feb 2020 to 30th Apr 2020, due to be
submitted and paid by 7th Jun 2020)
Please
Note:
VAT payments can still be made as
usual to avoid building up any unnecessary business debt.
3)
If I choose to defer my quarters VAT payment to HMRC when will I have to pay by?
The deferred liabilities for the above 3
Quarter Ends are due to be paid before
31st March 2021
Please Note:
As these liabilities are
still due to be paid to HMRC, if they are not paid in full by 31st March 2021, you may be fined or surcharges added for late payment.
4)
I have an active Direct Debit
with HMRC to collect my VAT liability automatically, will they suspend
collection for my quarter or should I cancel my DD?
If you have an active Direct Debit (DD) in place for VAT with
HMRC and would like to
defer your payment, you
will need to cancel this with your nominated business bank to stop HMRCs automated system from
collecting these payments. You
will need to set-up your DD in the future once the deferral period has ended.
For any further information please use the link below for the HMRC guidance of VAT Deferrments:
https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
