Many businesses have welcomed the news that the Government will introduce a new scheme to…
If you are using the option to defer VAT payments due between 20 March 2020 and 30 June 2020 and you have cancelled your direct debit, you should now ensure that you reinstate your direct debit in enough time for HM Revenue & Customs (HMRC) to take your next payment.
After 30 June 2020, you will need to make your VAT returns and payments as usual and on time.
However, you still have until 31 March 2021 to make any VAT payments you deferred between 20 March 2020 and 30 June 2020. It is up to you whether to pay this amount in a single instalment or several instalments.
Meanwhile, it has emerged that some businesses that have deferred their VAT payments between 20 March 2020 and 30 June 2020 have received ‘failed interim payment’ letters from HMRC. The letters were sent out in error and also include the wrong telephone number, which should be: 0300 322 7873.
If you have deferred your VAT payment and have received such a letter, you may wish to clarify with HMRC by telephone that you have not paid because of the VAT deferral provisions.