Coronavirus deferring VAT payments

Support for businesses through deferring VAT payments

The government is supporting businesses by deferring VAT payments falling due from 20 March 2020 to 30 June 2020.

Q: What period is the deferral for?

A: It is a deferment of UK VAT payments due in the period 20 March to 30 June 2020. Businesses will still need to pay this VAT liability but will have until 31 March 2021 to make the payment. UK VAT payments due after 30 June 2020 will need to be paid as normal.

Q: How do I defer a VAT payment?

A: It is an automatic deferral and no application is required.

Q: Will HMRC charge interest on the deferred payment?

A: HMRC will not charge interest or penalties on any amount deferred under this arrangement.

Q: I pay the VAT liability by direct debit do I need to cancel this?

A: We have received clarification from HMRC that businesses will need to cancel the direct debit otherwise there remains a risk that the payment will be collected on its due date.

coronavirus impact on busienss FAQs
Q: I am due a VAT refund or wish to reclaim VAT, will this also be deferred?

A: VAT reclaims and refunds will be processed as normal by HMRC.

Q: Do I still need to submit my VAT return?

A: Yes, you still need to submit your VAT returns to HMRC on time.

Q: Does this apply to VAT MOSS or import VAT payments?

A: The deferral does not apply to VAT MOSS or import VAT payments, which will need to be paid as normal.

For more information

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