By Emma Hooper
The Government has announced a temporary change to VAT payments as a way to help businesses manage cash flow during this difficult time. Any VAT liabilities becoming due between 20 March 2020 and 30 June 2020 can now be deferred, with payment needing to be settled on or before 31 March 2021.
As of now (3 April 2020) any VAT payments becoming due after 30 June 2020 will be payable as normal. But as things are constantly changing and uncertainty over the COVID-19 situation continues, these measures may be extended in the future.
It’s important to remember that whilst the VAT payments can be deferred, the return still needs to be submitted on time to avoid any late filing penalties.
If you’d like to take advantage of the VAT deferral and you currently pay by Direct Debit you will need to contact your bank and get this cancelled, otherwise the payment will be automatically taken.
If you have any questions around the deferral of VAT payments please contact email@example.com