HMRC has released information for businesses related to making VAT payments between 20th March 2020 and 30th June 2020. This is to help businesses manage their cash flow during this period.
For VAT registered businesses with a payment due between these dates, there are two options:
- Defer the payment until a later date
- Pay the VAT due as normal
The payment deferral does not cover VAT MOSS payments.
HMRC will not charge interest or penalties on any amount deferred.
If you decide to defer your payment, you must make the payment to HMRC by 31st March 2021. There is no need to inform HMRC of your decision to defer.
Businesses which pay by direct debit will need to speak to their bank or use online banking services to cancel the direct debit so that their payment isn’t collected.
However, you will still need to submit your VAT returns to HMRC on time.
After the deferral period ends, businesses will need to pay their VAT as usual. HMRC will release further information soon regarding payment of deferred VAT.
HMRC will continue to process VAT reclaims and refunds as usual during this time.
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.
Stay up to date
HMRC share news and updates regularly on their Twitter account. Keep up to date with the latest information by following their account here.
We also publish information on social media. It’s a useful resource for accountants and businesses. Find our Twitter account here.
BTCHub
Our MTD for VAT software,BTCHub, allows easy compliance with Making Tax Digital rules. If you’d like more information about the service, please get in touch on 0345 241 5030 or email sales@btcsoftware.co.uk
