Deadline for deferring VAT payments imminent
BAGMA members are being advised the deadline for deferring VAT payments is the end of this month (June).
As part of the Government’s support for businesses during COVID-19, HMRC gave businesses the option of deferring their VAT payments if they were unable to pay on time, without incurring late payment interest or penalties. Payment of VAT falling due between March 20 and June 30, 2020 can be deferred until March 31, 2021.
Businesses must continue to file their VAT return on time, even if you defer payment, with the option to defer ending on June 30, 2020. VAT returns with a payment due date after June 30 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. For further details on this, click here.
Any VAT payments members have deferred during this period should be paid in full on or before March 31, 2021. Businesses can make ad hoc payments or additional payments with your subsequent VAT returns to reduce the amount outstanding.
Find out more about deferring your VAT and income tax payments here