VAT payment deferral – to cancel or not to cancel?
The VAT payment deferral will apply from 20 March 2020 until 30 June 2020.
This is an automatic offer from HMRC with no applications required and it applies to all businesses. However, the businesses can still make payments if they wish to. Businesses will not need to make a VAT payment during this period. Businesses will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period.
However, based on my call with HMRC we understand that if any of our clients cannot make VAT payments on time, they should cancel their direct debit from their HMRC account online and give a call to HMRC on 0300 200 3835 to agree a payment plan if they will make the payment after 30th June 2020.
However, all VAT returns must be submitted on time.
For more information or if you have any queries regarding the VAT deferral, please contact Naveen Sahney, VAT + Custom Duties Advisor at firstname.lastname@example.org.
As things unfold, Garbutt + Elliott intend to support you through these unprecedented times. If you have any queries or concerns about any of the Government announcements and how they might affect you and your business please don’t hesitate to contact our teams.