Deferral of VAT payments as a result of COVID-19

Hillier Hopkins LLP

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As part of the government’s support for businesses during COVID-19, HMRC gave businesses the option of deferring their VAT payments if they were unable to pay on time, without incurring late payment interest or penalties. Payment of VAT falling due between 20 March and 30 June 2020 can be deferred until 31 March 2021.

Businesses must continue to file VAT returns on time, even if ​they defer payment.

We wanted to remind you that the option to defer paying VAT ends on 30 June 2020. This means that VAT returns with a payment due date after 30 June must be paid in full, on time.

If you haven’t deferred any VAT payments, you don’t need to take any further action. If you have deferred paying your VAT and normally pay by Direct Debit you should now reinstate it.

You should do this at least three working days before submitting your VAT return in order for HMRC to take payment. For further details go to GOV.UK and search for ‘Pay your VAT bill’.

Remember, any VAT payments you have deferred during this period should be paid in full on or before 31 March 2021. You can make ad hoc payments or additional payments with your subsequent VAT returns to reduce the amount outstanding, if you wish.

Don’t forget, it takes 3 days to set up a Direct Debit so please take this into account.

Click here to be directed  to the Direct Debit forms in order to pay your VAT. If you have any worries or concerns on this please take a look at our Coronavirus VAT Deferral Scheme FAQs help sheet or contact Ruth Corkin on ruth.corkin@hhllp.co.uk.

 
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Ruth Corkin

Ruth has been involved with VAT for over 30 years. She started her VAT career as a Customs and Excise Officer in Essex and then moved into consultancy with a variety of well-known accountancy firms. She is well known in the VAT world and is the proud author of many articles and technical works.

Contact Ruth at ruth.corkin@hhllp.co.uk or on 01908 713 860