How to defer your VAT payments during the COVID-19 crisis
The government’s instruction to effectively cease trading has brought much of the economy to a standstill and cashflow to a screeching halt. You will have seen a lot of detail in the media about the different schemes to help businesses cope, but in this article we are going to focus on one aspect which we know is of particular interest to UK Training’s customers... VAT.
As part of the support plan for business you can defer VAT payments that are due between 20 March 2020 and 30 June 2020. You can:
- defer the payment until a later date, or
- pay the VAT due as normal
It is important to note that this applies to domestic VAT and does not cover payments for VAT MOSS (to the EU) or import VAT. Additionally, be aware that HMRC will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement.
This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until 31st March 2021 to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.
Customers who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. Please do so in sufficient time so that HMRC do not attempt to automatically collect on receipt of your VAT return.
VAT payments due following the end of the deferral period will have to be paid as normal. Further information about how to pay the VAT you’ve deferred will be available soon.
How can UK Training help?
UK Training’s VAT experts can help you to resolve your VAT queries and explain how to administer the various processes involved. You can attend our two most popular VAT courses live online – go to this page to find more details.
http://www.uktraining.eu/news-article/how-to-defer-your-vat-payments-during-the-covid19-crisis/95