Deferral of VAT payments
The Chancellor announced that VAT payments will be deferred to support businesses with cashflow during the COVID-19 pandemic.
Businesses with a UK VAT registration have the option to defer VAT payments due between 20 March and 30 June and businesses will have until 31 March 2021 to pay any VAT deferred.
Businesses do not need to inform HMRC if they wish to defer payment, they simply do not make VAT payments due in this period.
Businesses who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. This can be done online if they’re registered for online banking and this should done in sufficient time so that HMRC does not attempt to automatically collect on receipt of their VAT return.
Businesses can continue to make payments as normal during the deferral period and HMRC will also continue to pay repayment claims as normal.
Businesses must continue to submit VAT returns as normal.
For more information please go to https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
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