VAT Payment Deferral

Posted on 29th April 2020 by Streets


Image to represent VAT Payment Deferral

As part of the measures announced to help businesses through the difficulties posed by the current Covid-19 pandemic, temporary changes have been made to VAT payments due between 20 March 2020 and 30 June 2020.


These are designed to aide cashflow by allowing the deferral of VAT payments. The flow chart below has been issued by HMRC to illustrate the actions required by businesses depending on how they pay their VAT.

VAT payment deferral

Please note the following points:

  • You do not need to apply for the deferral
  • If you pay by direct debit please cancel this in good time i.e. at least 5 working days before payment to ensure this is not automatically taken
  • The deferral does not cover payments for VAT MOSS or import VAT
  • Deferred VAT payments must be paid on or before 31 March 2021

In addition to the VAT deferral, if you are having difficulties paying your liabilities then HMRC are advising:

“Time to pay arrangements are available to all businesses and individuals who are in temporary financial distress as a result of coronavirus.”

You should contact their time to pay services on 0300 200 3822 for Self-Assessment and on 0300 200 3835 for other taxes.

Full guidance of the VAT deferral is available on the HMRC website at https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19


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The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


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