Get ready for the end of the VAT deferral scheme

HMRC has written to agents to remind them that the VAT deferral scheme ends in its current form on 30 June.

This means businesses need to set up cancelled direct debits in enough time for HMRC to take payment; submit VAT returns as normal and on time; and pay the VAT in full on payments due after 30 June.

In the letter, HMRC CEO Jim Harra said: “We’re writing to remind you that 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.

“If you haven’t deferred any VAT payments, you don’t need to take any further action. If you have deferred paying your VAT and normally pay by Direct Debit you should now reinstate it.

“You should do this at least three working days before submitting your VAT return in order for HMRC to take payment. For further details go to GOV.UK and search for ‘Pay your VAT bill’.”

Any deferred VAT payments during this period should be paid in full on or before 31 March 2021. Any business that needs extra time to pay must contact HMRC before the payment is due. For help go to GOV.UK and search for ‘If you cannot pay your tax bill on time’, or call 0300 200 3835 (quote ‘V1’).


Leave A Comment

You must be logged in to post a comment.

Latest News