Cessation of VAT Payment Deferral Scheme

Following the announcement in the early phases of the Coronavirus business support response that VAT payments due between 20 March 2020 and 30 June 2020 could be deferred, the government has confirmed this measure is to cease with no further extension.

Therefore liabilities falling due from 1 July onwards (i.e. those relating to VAT returns with quarter ending 31 May 2020 onwards) will unfortunately be payable as normal.

In respect of this, a couple of things to remember:

1. If you have taken advantage of the deferral process over recent months, you have until 31 March 2021 to settle the liability.

2. If you cancelled a direct debit in order to defer payment, please ensure this is reinstated in good time before the next VAT payment is due.

3. HMRC’s ‘Time to Pay’ service can be used if required for VAT liabilities going forward – you should make an application if necessary once you know the amount of the liability but before it falls due. Details of the service can be found here: https://www.tax.service.gov.uk/ask-hmrc/webchat/payment-problems

If you have any questions regarding this or anything else please get in touch, and for regular updates, announcements and news please check our website (www.dsaprospect.co.uk) and make sure you’re following our LinkedIn page: https://www.linkedin.com/company/dsa-prospect-ltd