VAT Payment Deferral Update
As included in our recent newsletters and updates, HMRC introduced a VAT payments deferral to help businesses who were unable to pay on time, without incurring late payment interest or penalties.
Payment of VAT falling between 20th March 2020 and 30th June 2020 can be deferred until 31st March 2021.
The option to defer paying VAT ends on 30th June 2020. This means that VAT returns with a payment due date after 30th June must be paid in full, on time.
If you haven't deferred any VAT payments, you don't need to take any further action.
If you have deferred paying your VAT and normally pay by Direct Debit you should now reinstate it.
You should do this at least three working days before submitting your VAT return in order for HMRC to take payment.
Remember, any VAT payments you have deferred during this period should be paid in full on or before 31 March 2021. You can make ad hoc payments or additional payments with your subsequent VAT returns to reduce the amount outstanding, if you wish.