The option to defer your VAT payments ends on 30 June 2020. The Coronavirus VAT payment holiday gave businesses the chance to defer the payment of any VAT liabilities between 20 March 2020 and 30 June 2020.
Businesses that took advantage of deferring their VAT payments should consider the following:
Re-establish any cancelled direct debits in enough time for HMRC to take VAT payments due from 1 July onwards.
Going forward, ensure that VAT returns are submitted as normal.
Pay the VAT in full on any payments due after 30 June 2020.
It is important to note that where the payment of VAT has been deferred, any VAT due must be paid by 31 March 2021. Businesses can also make additional payments with subsequent returns. No interest or penalties will accrue on deferred payments that are paid by the new due date.
There is no application process required to request this deferral as permission is automatic and all VAT-registered UK businesses are eligible. The choice to defer VAT payments was optional and businesses could still choose to pay any VAT due as normal. The deferral did not cover payments for VAT MOSS or import VAT. HMRC has continued to process VAT reclaims and refunds as normal during this time.
This article is copyright © 2023