VAT deferment

Rob Geary

The Chancellor has announced that VAT for the period 20 March 2020 to 30 June 2020 will not need to be paid during this quarter.

Although a VAT return will still need to be submitted with full details, any VAT due to HMRC will not be payable.

How to access the scheme?

All UK businesses are eligible for the deferral, this is an automatic offer and there is no need to apply. Businesses will not be required to make a VAT payment during this period. Taxpayers will be given until the end of the 2020/2021 tax year to pay any liabilities they have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.

When will my deferred UK VAT be due?

VAT deferred during the period is then due to be paid to HMRC by the end of the 2020/2021 financial year, which ends on 31 March 2021. This will be the date for all UK monthly VAT payers. The date for quarterly VAT payers, will be determined by their VAT filing deadlines, therefore 31 March 2021; 30 April 2021; or 31 May 2021.

Businesses who normally pay by direct debit should cancel their direct debit with their bank if you are unable to pay. This can be done online if you are registered for online banking. You should do so in sufficient time so that HMRC does not attempt to automatically collect on receipt of your VAT return.

Should you wish, businesses can continue to make payments as normal during the deferral period. HMRC will also continue to pay repayment claims as normal. Businesses must continue to submit VAT returns as normal.  

For more information

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