On 20th March 2020, the Chancellor of the Exchequer, Rishi Sunak, announced several measures to help businesses across the UK who will be affected by the Covid-19 coronavirus.
The situation is changing daily and there is scant detailed information coming from the government. We will keeping our website up to date and ensuring we give you the latest information in a simple and easy to understand manner.
VAT Deferral Scheme
- For all VAT registered businesses, HMRC will allow the deferral of VAT due in the period 20 March 2020 until 30 June 2020.
- This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period.
- If the business has a direct debit arrangement for VAT payments with HMRC, either for Payments on Account or for full payment of VAT returns, we recommend that it should be cancelled if you wish to take advantage of the scheme.
- Taxpayers will be given until 5th April 2021 to pay any liabilities that have accumulated during the deferral period.
- VAT refunds and reclaims will be paid by the government as normal.
- Businesses will still need to prepare and submit a VAT return. It is only the payment of VAT that is being deferred.
The situation is changing rapidly. This was the third significant announcement by the Chancellor in 10 days. Subscribe to our Covid-19 newsletter below to keep yourself updated on all the changes.