As a supportive measure for businesses during such difficult times, the government has announced that they will defer collection of VAT payment for three months.
Businesses will not need to make a VAT payment relating to the VAT return period for the month or quarter to:
- 29 February 2020 – due for payment 7 April 2020
- 31 March 2020 – due for payment 7 May 2020
- 30 April 2020 – due for payment 7 June 2020
The VAT returns should still be submitted to HMRC.
This is an automatic offer with no applications required however if you pay by direct debit you must cancel this otherwise the VAT payments will still be taken automatically. This is deferral of payment only; you will have until 5 April 2021 to settle these deferred payments.
HMRC will still issue VAT reclaims as normal.
We are indebted to Lynn Gemmell at GM VAT Solutions Ltd for this information.