If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to:
- defer the payment until a later date
- pay the VAT due as normal
This applies to the deferral of one quarter’s VAT only, though the government may extend this going forward. The quarters deferred are as follows:
- Quarter ended 29th February 2020 (VAT due on 7th April 2020)
- Quarter ended 31st March 2020 (VAT due on 7th May 2020)
- Quarter ended 30th April 2020 (VAT due on 7th June 2020)
You do not need to tell HMRC that you are deferring your VAT payment, and no penalties or interest will be charged on the deferred amount.
If you normally pay by Direct Debit you should contact your bank to cancel your Direct Debit as soon as you can, or you can cancel online if you’re registered for online banking. If you are due a refund, HMRC will continue processing VAT refunds as normal.
Deferred VAT must be paid on or before 31st March 2021.
Full details may be found on the .gov website here: https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19