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Bite Size Corvid Business Help -Defer your VAT


Who is Eligible?

All VAT registered Businesses are eligible

What is it?

VAT payments due in the 3month period 20/3/2020 to 30/6/2020 can be deferred until March 2021. Some businesses had mistakenly assumed that they don’t have to pay the VAT over. This is not the case. It is a deferral not a grant – so the VAT needs to be paid back – but at a later date

Tell me more…

This is a simple and effective way the Chancellor is putting cash in the hands of VAT registered businesses -whether they be small or large

Any VAT deferred needs to be repaid on or before 31/03/2021. No interest or penalties will be charged as long as the VAT is paid by that date

How do I do this?

Submit your VAT Returns on time and in the usual manner(MTD) but don’t pay the VAT at the time. If you pay by DDR, cancel the DDR with your Bank. If you pay by any other means, simply don’t pay & there’s no need to tell HMRC that you are deferring your payment. HMRC will advise in due course on how to repay the deferred VAT. Note: HMRC will continue to process refunds in the usual manner

VAT payments due following the end of the deferral period will have to be paid as normal. Further information about how to repay the VAT you’ve deferred will be available soon


TIP:

For businesses submitting quarterly VAT Returns and paying by DDR, this means they can hold onto VAT collected as early as the quarter Dec 2019/ Jan 2020/ Feb 2020 and not pay it over till the end of March 21. That’s actually an interest free loan of up to 16months -if the number Gods favour you…




The above HMRC guidance is accurate at time of publishing, but please note that most of the COVID related reliefs are constantly evolving and liable to change. Please call us or refer to www.Gov.UK for the latest guidance

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