VAT deferment - direct debit reminder!

22.06.2020
Rob Geary
VAT

If you are VAT registered and took advantage of the VAT payment deferral arrangements you will need to reinstate your direct debit.

Any VAT registered businesses who took advantage of the VAT payment deferral arrangements, which HMRC announced as part of their COVID-19 support measures, will need to reinstate those direct debits so that payments due after 30 June and in relation to liabilities declared on their May and subsequent VAT returns can be made to HMRC.

HMRC suggest that direct debit mandates should be set up at least three working days before a VAT return is filed. Equally, in the event any outstanding VAT returns need to be filed then after filing, three working days should be left clear before reinstating the direct debit mandate for the May VAT return.

HMRC have confirmed to the ICAEW Tax Faculty that they will not collect the outstanding balance of deferred VAT returns when the direct debit mandate is reinstated. HMRC state that they have made the necessary systems change to avoid this happening for businesses who signed up to MTD for VAT.

If you would like to speak to our VAT specialist, Rob Geary

Wide-ranging tax planning and compliance services for individuals seeking advice and guidance from our team of experienced and highly qualified professionals.

Friendly and coherent advice and guidance on accounting and tax matters for small business owners including those starting out for the first time.

Established businesses requiring accounting and tax compliance services, forward thinking tax planning advice and the support to help your business succeed.

Our full range of enhanced corporate services aimed at large companies and those requiring audit, assurance, corporate tax advisory and diverse tax planning services.

Glossary

Test

This is a test definition

more