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Deferral of VAT payments

For those seeking to delay payment of VAT in light of the current COVID-19 situation, please refer to the following communication released by HM Revenue and Customs on the 26th March.

The Chancellor announced a VAT payments deferral on 20 March to support businesses with cashflow during the COVID-19 pandemic.

This means that all businesses with a UK VAT registration have the option to defer VAT payments due between 20 March and 30 June. Businesses have until 31 March 2021 to pay any VAT deferred as a result of this announcement.

Businesses do not need to inform HMRC if they wish to defer payment. They can opt in to the deferral simply by not making VAT payments due in this period.

Businesses who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. This can be done online if they’re registered for online banking. They should do so in sufficient time so that HMRC does not attempt to automatically collect on receipt of their VAT return.
Should they wish, businesses can continue to make payments as normal during the deferral period. HMRC will also continue to pay repayment claims as normal. Businesses must continue to submit VAT returns as normal.

For more information please go to GOV.UK and search “Deferral of VAT payment”.

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We have a VAT return done for the period up to 29 February, Payment will be taken next week, does this fall into the deferral period ?

No sadly not. I believe its March to May vat periods. But you can ring hmrc and ask for time to pay.

My business is the same, VAT done up to end of Feb, payment due 7th April. I have been told by my accountant that I can defer if I wish to help cash flow. I would take that to be the case as the rules are ‘any payments due between 20 March and 30 June.’ Therefore if payment is due between these dates, you can take advantage of the deferral.

Yes your correct its the payment date. When I replied the detail had not been published yet so it was unclear.

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