VAT Payment Deferral Scheme

One of the key areas of support that the government is providing for businesses through the Coronavirus Job Retention Scheme (CBRS) is the ability for VAT registered companies to defer their VAT payment during this period. I have pulled together some advice below.

If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to:

• defer the payment until a later date
• pay the VAT due as normal

Please remember, this does not cover payments for VAT MOSS or import VAT.

HMRC will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement.

Here are some things that you should remember:

• You will still need to complete your VAT returns as normal (if we already do this for you, we will continue to do so).
• If you have a direct debit set up and decide to defer payment then please don’t forget to cancel your direct debit – either by contacting your bank or through your online banking app.
• You do not need to tell HMRC that you are deferring payment.
• If you choose to defer your payment then you must pay anything outstanding by 31st March 2021.
• VAT payments due after the end of the VAT deferral period stated above will have to be paid as normal.
• If you are experiencing difficulties in paying your VAT then HMRC does operate a “time to pay” service. You will find more information regarding this at https://www.gov.uk/guidance/de...

M.A.D. Accountants are based in West Bridgford, Nottingham, and are specialists in tax and accountancy assistance for businesses and individuals. We're here to make a difference to your business and your life with no-nonsense, jargon-free advice and help.