As you may already be aware, HMRC gave businesses the option to defer their VAT payments if they were unable to pay them on time without incurring penalties or late payment interest; as part of the Government’s support for businesses during the Covid-19 pandemic. Payment of VAT due between 20 March and 30 June 2020 can be deferred until 31 March 2021.
Please note – even if you defer your payment you must continue to file your VAT return on time.
You should have recently received a reminder from HMRC, as the option to defer paying VAT ends on 30 June 2020; meaning that VAT returns with a payment due date after 30 June must be paid in full and on time.
If you didn’t defer any VAT payments, please ignore this email as you don’t need to take any further action.
If you chose to defer paying your VAT and you normally pay by direct debit, you need to reinstate it. You need to do this at least three working days before submitting your VAT return in order for HMRC to take payment.
You can find details about setting up a direct debit or making payment by visiting gov.uk and searching for ‘Pay your VAT bill’.
HMRC has advised that any VAT payments you have deferred during this period should be paid in full on or before 31 March 2021. You can make ad hoc payments or additional payments with your subsequent VAT returns to reduce the amount outstanding, if you wish.
If you have any queries please contact your local Champion advisor.