COVID-19: HMRC VAT Payment Deferrals
You still have to submit your returns ...
POSTED BY ROGER EDDOWES ON 06/04/2020 @ 8:00AM
On 20th March 2020, Chancellor Rishi Sunak announced that VAT payments to HMRC will be deferred to assist businesses during the COVID-19 outbreak. Here are the most common questions I'm being asked about it ...
HMRC have updated their guidance on VAT payment deferrals!
copyright: stillfx / 123rf
The first question is always, "Do I need to apply to HMRC if I want to defer my payments?". According to gov.uk, no, you don't have to, this is happening automatically. Another common one is, "If my quarter-end is February 2020, do I still need to submit a return?"
"Yes, you still need to submit your returns!"
However, as the payment date for a February 2020 quarter-end is the 7th April 2020, the date falls within the deferment period of 20th March to 30th June. The same deferment applies to VAT periods that end March 2020 and April 2020.
I have a few clients who receive regular VAT repayments back from HMRC. I've assured them that any VAT due back from HMRC will not be impacted and they will be paid as normal, as long as they keep up to date with filing their quarterly VAT returns.
HMRC is also recommending that any business that pays by Direct Debit should cancel it if they are unable to pay, but be sure they do it in time for their bank to process the cancellation. You don't want to do it the night before it's supposed to go out as it may not process in time and you'll still send the money!
"HMRC will not automatically cancel your Direct Debit!"
To give them credit, HMRC have updated their guidance on the deferral of VAT scheme. The deadline for paying any VAT due is now confirmed as 31st March 2021. And don't forget ... should you wish to, you can continue to make your VAT payments as normal during the deferral period.
Until next time ...
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about VAT payment deferrals for your business, call me on 01908 774320, leave a comment below or click here to ping over an email and let's see how I can help you.
Don't forget to stay updated with our daily social media posts on Facebook. Visit @essendonaccountsmiltonkeynes and like our page!
About Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
More blog posts for you to enjoy ...
Other bloggers you may like to read ...