Businesses deferring VAT – don’t forget to stop direct debits to HMRC!
1st April 2020, 8:47 am
One of the business support measures in place for COVID-19 is the ability to defer VAT payments otherwise due between 20 March 2020 until 30 June 2020.
The relief from payment is automatic, there is no need to obtain approval. However, businesses need to make sure the VAT isn’t automatically collected from their bank accounts where direct debits are in place. If the direct debit is cancelled it is best to make sure there is at least one working day before the deduction takes place in order to give the Bank the necessary time required.
Businesses must remember to reinstate the direct debits for payments arising after 30 June 2020 (unless this deferral period is extended further).
Businesses will have until the end of the 2020-21 tax year to pay any liabilities that have been deferred from this period.
VAT repayments that arise during this deferral period will be paid by the government as normal.
If you have any questions please contact us at DTE to discuss these measures further.
We expect further updates from HMRC in the upcoming days so stay tuned with us to be informed as new information is released.
This is a challenging time for all of us, but at DTE we believe that together we will get over it, and will continue to thrive in the future. As always, we are committed to be your partner for success, and if you have any questions about the information above, or need support for your business, please get in touch with us today. |
This document was originally published on https://www.dtegroup.com/news/blog/businesses-deferring-vat-dont-forget-to-stop-direct-debits-to-hmrc. Please visit our website for the most up to date information and advice for businesses relating to Covid19.
Next Article
Claim for wage costs through the Coronavirus Job Retention Scheme