Businesses and sole traders that make VAT payments to the HMRC by direct debit are being advised to cancel the arrangement to ensure they take advantage of the government’s deferral scheme.
The government is looking to support the economy during the coronavirus pandemic by deferring payments from March 20 until June 30.
VAT-registered businesses and individuals will not need to make a payment during this period and this is an automatic offer with no applications required.
Cancelling any direct debit will ensure that payments aren’t automatically processed. However, they will also need to remember to set up the direct debit for future VAT returns.
And they should also continue to prepare their VAT returns as normal and submit them on time.
VAT-registered businesses and individuals will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period.
VAT refunds and reclaims will be paid by the government as normal.
For more information about the government’s support for business during the coronavirus crisis visit: www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
To discuss any issues that you are facing as a result of coronavirus and how you can access support please contact WNJ on 01772 430000. We are here for you.