Deferral of VAT payments due to coronavirus (COVID-19)
As you may know, you are able to defer your next VAT payment to help you through the Covid-19 Pandemic. Here are some answers to common questions we are receiving;
- Do I need to apply to HMRC to defer the payment? No, you do not, this will happen automatically according to the HMRC website.
- Do I still need to prepare and submit my VAT return? Definitely yes, your VAT return still needs to be submitted on time otherwise you will get a black mark with HMRC and possibly a penalty.
- Which returns does this relate to? The deferment period is 20 March to 30 June 2020. This means that if you are due to pay VAT between these dates you can defer that payment. As it currently stands you can defer this payment until 31 March 2021.
- If I am due a refund of VAT will this be affected? No, HMRC will pay out as normal.
- If I pay by direct debit will my payment automatically cease? No, you will need to cancel your direct debit yourself and you will need to remember to set it up again for the next return.
The guidance can be found at https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19?utm_source=41029de3-0a6d-43b8-91f2-81d142ea56a2&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate
HMRC also has a dedicated helpline with an option for VAT. The number is 0800 0159 559. While the deferral measures brought in should reduce the need to call HMRC to discuss a time to pay, you can also use the number if you have difficulty submitting the return on time due to coronavirus related issues.