VAT Deferment – What do businesses need to do now it has come to an end?
The Government allowed businesses to defer VAT payments due to HMRC in the period 20 March until 30 June 2020. For businesses to take advantage of the deferment, the direct debit used to make VAT payments to HMRC had to be cancelled. The VAT payments deferral scheme ended on 30 June 2020.
After the deferment
Businesses should ensure:
- The cancelled direct debit is set up with enough time for HMRC to take any payment due on the next VAT return. The direct debit also allows HMRC to pay any repayment direct to the bank account.
- VAT returns are submitted on time.
- Pay any VAT due to HMRC after 30 June in full.
Payments can be made towards the deferred VAT at any point and must be paid in full before 31 March 2021.
Time to Pay
If you need any help to pay your VAT, you can discuss your tax affairs with HMRC’s Time To Pay service. Further information regarding this service can be seen in our Covid-19 Time to pay blog here.
Additionally for further related VAT news, please visit our VAT Hub here.