25th March 2020VAT Payments Holiday – Key Points Summarised
On 20 March 2020 the UK Government announced temporary changes to the VAT system, as part of a package of measures in response to the ongoing COVID-19 outbreak.
The main points are as follows:
- The deferral of most VAT payments due between 20 March and 30 June 2020;
- This therefore includes the VAT Return payments due for the periods ended 29 February, 31 March and 30 April 2020 and any VAT Payments on Account due in that period;
- No application is required to make use of this deferment facility;
- This deferment facility does not extend to Import VAT paid on the importation of goods to the UK;
- The VAT due to HMRC can be deferred until 31 March 2021 with no interest or penalties;
- Notwithstanding the above VAT Returns should still be completed and submitted as normal;
- Any VAT refunds will still be paid by HMRC in the usual manner;
- If you have a Direct Debit set up with HMRC to pay the VAT, you will need to cancel the Direct Debit by calling your bank;
- If the Direct Debit is not cancelled, HMRC will collect the VAT;
- Following the VAT payments holiday period, a new Direct Debit will need to be set up
Should you have any questions, please do not hesitate to contact us.
25 March 2020
The information contained in this guidance has been obtained from public sources and every attempt has been made to ensure its accuracy at the date of publication. In this ever changing environment, this information is subject to change and we will not accept liability for losses arising from changes in the law or the interpretation thereof.