VAT Payment Deferrals
In response to the coronavirus outbreak, the government has announced assistance for VAT registered businesses.
Those registered for VAT will be able to defer VAT payments form 20 March to 30 June 2020.
This means that any VAT liabilities due for the period mentioned above will be deferred, should the business choose to, until three months thereafter.
This is a de facto payment holiday of three months, offering a very welcome fillip to cash flow for businesses at this time.
HMRC have confirmed that any rebates and refunds in respect of VAT will be issued in the usual manner.
It is also important to file your VAT Return on time in the usual way, under Making Tax Digital, in order to avoid a late filing penalty.
This is especially important at this time as the government needs to monitor business income and expenditure and take a view of the forward planning of VAT coming into the treasury.
Please note, the VAT due in this period will still be due for payment in three months time; this is a payment holiday, called a deferral, and not a tax break.
Ask Us For Help
We are here to help and have set up a dedicated team to help you during this crisis.
If you are considering using this scheme or have any queries about this measure, please email firstname.lastname@example.org and we will contact you to discuss your exact situation.