Some important news as at 18 June 2020, regarding the normalisation of the vat payments going forward after the earlier deferment facility
Businesses who have taken advantage of The deferral of VAT payments under the government’s COVID-19 support package are reminded that the scheme ends on 30 June 2020 this is an opportunity to remind the busines owners that they must remember to reinstate their VAT direct debits in time for their first post 30 June VAT payment date.
The VAT deferral measure applies between 20 March 2020 and 30 June 2020 and defers payment to 31 March 2021. In practice this means payments due for the VAT quarters:
- 29 February 2020: normal payment deadline 7 April.
- 31 March 2020: normal payment deadline 7 May.
- 30 April 2020: normal payment deadline 7 June.
Businesses should allow 3 working days for their direct debit to be reinstated but are also advised to wait three working days after they have filed the last return eligible for payment deferral.
This is a very tight window and reinstating the direct debit mandate can only be done by the business. We as your accountants / agent cannot do it for you.
Further guidance is expected from HMRC on this before 30 June. So far their only update has been “VAT payments that are due after the end of the deferral period will need to be paid as normal”.
HMRC have, however, confirmed that their systems have been updated so that once the direct debit is reinstated the deferred VAT will not automatically be collected from those in Making VAT Digital.
Stay calm, stay safe…stay well and remember, ‘JOY’ is contagious too!