| 31 March 2020
Coronavirus support – Deferral of VAT payments
Written by Support for Business
Deferral of VAT payments
Deferral of VAT payments has been introduced by the government to help UK VAT registered businesses ease cashflow concerns during the coronavirus (COVID-19) pandemic.
These are temporary measures that the Government has introduced to help businesses with cashflow and will take place from March 20th 2020 to 30th June 2020.
Any business that is UK VAT registered and has a VAT payment due between the dates stated above have 2 options:
- defer payment until a later date
- make the payment a usual
If you choose to defer your VAT payment the business will still need to complete a VAT return and file on time, but will not need to make payment or notify HMRC.
HMRC will not charge interest or issue penalties during this period as long as returns are filed on time.
Any VAT that is deferred in this period will need to be paid to HMRC on or before 31st March 2021.
If you usually pay by Direct Debit you should contact your bank to cancel this as soon as possible to avoid any being charged.
Once the deferral period has passed, VAT will need to be paid as normal.
If you would like to find out more about the VAT deferral scheme the GOV.UK site has further information.
Businesses that need further support can find further information on HMRC's Time to Pay scheme.
The scheme has only recently been announced by Government and as more information is released we will endeavour to keep you updated with frequently asked questions.