Read this blog post to find out what the Government is doing to help businesses from the ongoing coronavirus pandemic.
VAT deferral measures were introduced by the Government to help businesses during the coronavirus pandemic. The aim of the measures is to aid cash-flow. All UK businesses that are VAT registered have the option to defer VAT payments that are due between 20th March and 30th June 2020. Where the option to exercise deferral is used HMRC do not need to be notified and the deferral date extends to 31st March 2021.
It has been confirmed that HMRC will not charge interest or penalties on payments that are deferred. An important point to note for businesses that have an active direct debit in place is that the mandate should be cancelled to utilise the deferral. If it is not cancelled HMRC will collect funds as normal. This relief has no bearing on the submission of VAT returns and these must be done as normal.