HMRC has advised that taxpayers who wanted to defer their VAT payments but did not cancel their direct debits in time will be able to claim a refund.
UK VAT registered business that have a VAT payment due between 20 March 2020 and 30 June 2020 now have the option to either:
- defer the payment until a later date or,
- pay the VAT due as normal
Notably, there will be no interest charge or penalties on any amount deferred. This is a temporary change to help businesses manage their finances during the coronavirus crisis.
Only certain types of VAT payment can be deferred:
- quarterly and monthly VAT returns’ payments for the periods ending in February, March, and April
- payments on account due between 20 March 2020 and 30 June 2020
- annual accounting advance payments due between 20 March 2020 and 30 June 2020
The deferral does not cover payments for VAT MOSS or import VAT.
Government guidance on this issue can be found here.
The information provided in this blog is for general informational purposes only and should not be considered professional advice. As far as we are aware, the content is accurate at time of publication. Torgersens assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.
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