VAT Deferral ends – Remember to set up your Direct Debit again

The temporary change that allowed deferral of VAT payments due to HMRC, because of coronavirus (COVID 19), ends this month.

As things stand VAT payments for periods ending May 2020 onwards should be paid to HMRC by their normal due date. Payments on account and annual accounting advance payments due from 1 July 2020 will also be due to be paid as normal.

If you have cancelled your Direct Debit as part of your deferral of VAT payments due to coronavirus (COVID 19), and wish to continue paying that way, you will have to set your Direct Debit up again. This should be done in time for the first payment you have due to HMRC after the 1 July 2020 to be taken from your bank account.

If you do not wish to pay by Direct Debit you should ensure that your payments reach HMRC by the due date. For example if you have a VAT payment due for the period to 31 May 2020 your payment should reach HMRC by 7 July 2020.

If you are struggling to pay your tax bill on time, or you are experiencing financial difficulties you can contact HMRC’s Time to Pay service for help.

More information can be found in the following link:

https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.