As one of the measures to help businesses affected by Coronavirus COVID-19 the Government has announced that VAT payments that would normally be due with VAT returns at the current time can be deferred.
Currently the deferral applies from 20 March until 30 June 2020. VAT payments due in this period do not need to be made and taxpayers will be given until the end of the 2020-21 tax year to make payment of any deferred liabilities.
This is an automatic offer and you do not need to apply to HMRC to be eligible. You simply don’t make any payments you want to defer.
VAT returns should still be filed.
VAT refunds due from HMRC will continue to be made as usual.
It’s important to note that if your business normally pays by direct debit then you should cancel the instruction with your bank and should do so in sufficient time to prevent HMRC from automatically collecting payment.
If you have any questions on this topic please contact me
For information on Government assistance for businesses affected by COVID-19 please visit our dedicated update