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COVID-19: Deferral of VAT update

COVID-19: Deferral of VAT update: The government has just announced that businesses now have until 31 March 2021 to pay any VAT deferred as a result of this announcement. In addition, businesses can opt in to the deferral simply by not making VAT payments due in this period.

COVID-19: Deferral of VAT update

The announcement also advised that businesses who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. This can be done online if they’re registered for online banking.

Business taking advantage of this deferral need to cancel their direct debit in sufficient time so that HMRC does not attempt to automatically collect on receipt of their VAT return.

However, those who wish to continue paying as normal through the deferral period should do so if the wish.

The good news is that HMRC will continue to process repayment claims as normal but HMRC are still expecting businesses to continue to submit their VAT returns as normal.

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By CANALITIX ACCOUNTANTS

CANALITIX ACCOUNTANTS provide income corporation tax and tax planning services to individual and corporate clients. Our niche areas Research and Development (R&D) tax credits, EIS/SEIS, IR35, Construction Industry Scheme (CIS), HMRC investigations and appeals.

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