If you usually pay your VAT by Direct Debit and are unable to pay, you should cancel your Direct Debit. Previously, we had said that this would be automatic but now HMRC are advising people to cancel their Direct Debit.
The government has announced that for VAT, the deferral will apply to payments due from 20th March until 30th June, with all UK businesses eligible.
How to access the scheme
This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.
Cancel your Direct Debit urgently
Customers who normally pay by Direct Debit should cancel their Direct Debit with their bank if they are unable to pay. Please do so in sufficient time so that HMRC do not attempt to automatically collect on receipt of your VAT return.
If you have any questions about VAT and other issues arising from the COVID-19 crisis, please do not hesitate to get in touch with the team at DRG Chartered Accountants.
DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.