Due to the COVID-19 pandemic, businesses that are already registered for VAT can now opt to defer payments due between 20March 2020 and 30 June 2020. As such, VAT returns are covered for:

  • The quarter to 28 February 2020 that are due by the 7April 2020
  • Quarter to 31 March 2020 due by the 7May 2020
  • Quarter to 30 April 2020 by the 7 June 2020.

This is just an option; you do not have to take advantage of it. If you can afford it, it might be worth paying it to avoid later debt.

HMRC will not charge interest on delayed VAT payments, and you don’t need to tell them – just delay the payment and HMRC will assume you wish to pay at a later date.

Can I cancel a VAT direct debit?

If you want to take advantage of the deferral, and you usually pay through a direct debit, you will have to manually cancel this. If you forget to, then of course – the payment will be taken automatically.

When do I need to make the rescheduled payment by?

All VAT deferrals must be paid by 31March 2021.

What about the return?

Even though payments are not due, returns must still be filed for any of the deferral periods.

VAT repayments

When a VAT return shows a repayment, HMRC will make this as usual.

What happens after the deferral period?

When the VAT deferral window comes to an end, VAT payments continue as usual.

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Any questions?

If you’d like a meeting or a Skype call to discuss this, please get in touch with your favourite Liverpool accountant