The option to defer VAT ends on 30 June 2020

The option to defer VAT ends on 30 June 2020

The deferral of VAT payments due to Coronavirus comes to an end on 30 June 2020. The first affected VAT returns are those for the quarter ended 31 May 2020, which are due for payment on 7 July 2020.

Businesses who have previously cancelled their direct debit mandates will need to take steps to reinstate them so that they are in place in time to meet payment deadlines arising after 30 June 2020. Direct debit mandates usually need to be set up three working days before a VAT return is filed.

HMRC has confirmed that it will not collect the outstanding balance of deferred VAT falling due between 20 March and 30 June 2020 when the direct debit mandate is reinstated. HMRC has made the necessary systems change to avoid this happening for businesses in MTD for VAT. Any VAT payments deferred during this period should be paid in full on or before 31 March 2021. Ad-hoc payments or additional payments can be made with your subsequent VAT returns to reduce the amount outstanding, if you wish.

If you are experiencing financial difficulties and are unable to pay any VAT due on 7 July 2020 and need additional time to pay, please contact HMRC on 0300 200 3835, before the payment is due, who will arrange a repayment plan without any additional surcharges.

If you would like any additional information please contact our Digital Services Manager, Sarah Smith, on the details below:

Sarah Smith
Digital Services Manager
direct dial: 01942 292527