As part of the government’s support for businesses during COVID-19, HMRC gave businesses the option of deferring their VAT payments if they were unable to pay on time, without incurring late payment interest or penalties. Payment of VAT falling due between 20‌‌ March and 30‌‌ June 2020 was capable of deferral until 31‌‌ March 2021.

It is important to recognise that the window is NOW CLOSED and the deferral option does not appear to extend to covering quarterly / monthly returns made up to 31st May 2020.

 

  1. Why Are May Returns Being Excluded?
  • The option to defer paying VAT ends on 30‌‌ June 2020.
  • This means that VAT returns with a payment due date after 30‌‌ June must be paid in full, on time.
  • Returns made up to 31st May 2020 have a due date for payment of 7th July 2020 and therefore are not covered by the Scheme.

 

  1. What Do I Need To Do Now?
  • You should continue to submit VAT returns as normal;
  • If you normally pay by direct debit and you have previously cancelled the instruction with your Bank then you should set about reinstating it;
  • You should seek to confirm with your bank that the DD will be operational for the due date in July.

 

  1. What If I Cannot Pay?
  • If you are unable to pay the VAT due and need additional time to pay, you need to contact HMRC before the payment is due.
  • For help, either
    • Contact Lisa Garfinkle (lisag@barrons-bds.com) or Jo Travis (jot@barrons-bds.com) at Barrons who will be able to assist you and contact HMRC on your behalf if you prefer, or
    • Contact HMRC direct by
      • Using the GOV‌‌.UK website and search for ‘If you cannot pay your tax bill on time’, or
      • Call 0300 200 3835. quoting ‘V1’.

Barrons has put together a helpful guide to running your business during the coronavirus crisis.