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VAT payment deferral scheme is ending

The Government allowed businesses with VAT payments due between 20 March 2020 and 30 June 2020 to defer their payments to help manage cash flow.  As a reminder, any payments due between these dates which have been deferred must be paid on or before 31 March 2021 to avoid interest or penalties.
 
As this scheme is coming to an end on 30 June 2020 businesses should be aware of the following:
 
• Monthly or quarterly VAT returns with a period ending on 31 May 2020 have a payment due date of 7 July 2020 and any VAT due should be paid by this date.  All future VAT returns should also be paid by their payment due dates.
 
• Payments on account or annual accounting advance payments due after 30 June 2020 will need to be paid by the usual due dates.
 

Direct Debit payments

You may have previously paid your VAT by Direct Debit and to ensure payments weren’t taken during the deferral period cancelled these directly with HMRC, your bank, or both.
 
You therefore need to be aware that if you would like to start paying by Direct Debit again you will need to set this up with HMRC, which can be done from your VAT online account, please see here for more information - https://www.gov.uk/pay-vat/direct-debit
 
It’s important to note that the Direct Debit must be set up at least 3 working days before you submit your VAT return.  Therefore, if your VAT return for the period ending 31 May 2020 has already been filed with HMRC without setting up the Direct Debit first you will need to pay any VAT due by a different method, please see here for details on how to pay - https://www.gov.uk/pay-vat.  You should then set up your Direct Debit in advance of filing your next VAT return.
 

Time to pay

If you will find it difficult to make VAT payments due after 30 June 2020 please contact HMRC to discuss setting up a time to pay arrangement.  More information can be found here - https://www.gov.uk/difficulties-paying-hmrc
 
Please contact your usual WR Service Delivery Manager if you have any questions.

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