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COVID19: VAT deferral for UK Businesses

VAT deferral for UK Businesses: If you are 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

It does not cover VAT MOSS payments.

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

Submit your VAT Returns

You will still need to submit your VAT returns to HMRC on time.

HMRC will continue to process VAT reclaims and refunds as normal during this time.

If you choose to defer paying your VAT

VAT deferral for UK Businesses – If you choose to defer your VAT payment as a result of coronavirus (COVID-19), you must pay the VAT due on or before 31 March 2021.

You do not need to get in touch with HMRC if you are deferring your VAT payment.

Do you make payments by Direct Debit?

Direct Debit – contact your bank to cancel your Direct Debit asap.

What happens after the VAT deferral ends?

VAT payments due following the end of the deferral period will have to be paid as normal. We are waiting for further information regarding how to repay the VAT you’ve deferred.

If you’re in temporary financial distress because of COVID-19

If you are experiencing financial difficulties more help is available from HMRC’s Time to Pay scheme.

We will keep you updated as the Government releases new information.

Please do not hesitate to contact us here by email if you have any concerns or questions regarding the above or the COVID-19 outbreak. We are here for you during this testing time.

Stay safe

From Team HB

We are here for you during this difficult time. Our business contingency plan is in place and we will do everything we can to support our clients during this uncertain period, please do not hesitate to contact us here if you have any concerns or queries.

If you missed our earlier mail out on “What you can do to help your business/sole trade through the COVID-19 crisis” please click here

If you would like to receive our updates to your inbox please click here to subscribe

The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above

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