Temporary changes to the VAT payments due between 20 March 2020 and 30 June 2020 to help businesses manage their cash flow due to the tough financial and economic implications the coronavirus has caused. If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have two options:
- Defer the payment until a later time/date
- Pay the VAT (due as normal)
It does not cover VAT MOSS payments. HMRC will not charge interest or penalties on any amount deferred as of the outcome of the Chancellor’s announcement.
- You will still need to submit your VAT return to HMRC on time.
- HMRC will continue to process VAT refunds and reclaims as normal during this time.
Defer paying your VAT
If you choose to defer your VAT payment as a result of the coronavirus, you must pay the VAT due on or before 31 March 2021. You do not need to tell HMRC that you are deferring your VAT payment.
Direct Debit Payments
If you normally pay by Direct Debit you should contact your bank to cancel your Direct Debit as soon as you can, or you can cancel online if you’re registered for online banking.
After the VAT Deferral ends
VAT payments due following the end of the deferral period will have to be paid as normal. Further information about how to repay the VAT you’ve deferred will be available soon. If you’re in temporary financial distress because of the coronavirus.
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