COVID-19: VAT deferral scheme
A lot of our clients are contacting us regarding the VAT deferral scheme that has been recently announced as part of the aid package for the COVID-19 pandemic. The main points listed below will give you a better understanding of how this will work in practice:
All VAT payments will be suspended that are due from the 20 March 2020 to 30 June 2020.
If you currently have a Direct Debit set up with HMRC, this needs to be cancelled manually - HMRC will continue to collect the payments if you do not do so
VAT returns must still be filed on time through HMRC Making Tax Digital. They are due 1 month and 7 days after your VAT return period.
VAT refunds and VAT repayments will be dealt with as normal
If you wish to pay your VAT and not defer it this will have to be done by BACS from your bank account. A link to HMRC for instruction on how to do this is included here
Any deferred VAT will be paid at the end of this financial year, being 31 March 2021
We understand that this is worrying times for our clients and we can assure you that we are working hard behind the scenes to establish all options that will become available over the coming weeks to help the business community.
As always stay safe and keep washing them hands.