Cashflow Benefit - Temporary suspension of VAT return payments to HMRC - COVID 19
In response to the unprecedented disruption caused by COVID 19 the UK Government has announced a series of financial measures to help businesses.
In relation to VAT, all VAT registered businesses can choose to defer any VAT return payments that are due to HMRC between 20 March and 30 June 2020 until 31 March 2021. To clarify, the submission of VAT returns during this period is still required by the due date. Also, we understand that the deferral does not apply to any MOSS payments.
HMRC has confirmed that there is no need to apply for this payment deferral and that there won’t be penalties or interest charges on these late payments. HMRC has also stated that any VAT repayments due to businesses during this period will be repaid as normal.
Anyone who wants or needs to defer VAT return payment and who uses Direct Debit to pay HMRC should remember to action the suspension of these automatic payments, including for any monthly Payments on Account. Similarly, if you have already set up the payment to HMRC of your March 2020 VAT return to go off to HMRC between now and the first week of April you will be able to defer that, if you want to.
Don’t forget there are other VAT Cashflow ideas which may help you – perhaps Bad Debt Relief claims or using the Cash Accounting scheme – could the issuing of Requests for Payment rather than issuing VAT invoices help your business survive until we get to the new “normal” in business? – as we’ve mentioned we are in this together and the Centurion team can quickly chat you through some options if it would help – there will be no cost for a chat.
Also this is a fast-changing environment – so do register on our site to get our VAT Newsbytes sent directly to you.
If you do anticipate or have any difficulties with VAT during the current situation remember we are here to help if you need it, so please do get in touch with your usual contact in the team or email firstname.lastname@example.org
For the avoidance of doubt, the content recorded in this news article does not constitute formal advice and we do not guarantee the accuracy of any information provided at the time of reading. It is always recommended that you should seek professional advice before acting on any of the news articles or information included.