COVID-19 update: VAT registration
This affects everyone now registered for VAT or who may register for VAT in the foreseeable future. If it does not apply to your personal circumstances at the moment, please feel free to pass it on to anyone to whom you feel it would be helpful.
Deferral of payment
The due dates for VAT return submission have not been amended in any way. They are still 7 March for January quarter returns, 7 April for February quarter returns, 7 May for March quarter returns, and so forth.
The Government has allowed deferral of VAT payment in respect of amounts becoming due up to 30 June 2020.
The May 2020 VAT Return
The due date of payment for the VAT return of the quarter to 31 May 2020 is 7 July 2020. Therefore, there is no automatic deferral of VAT for that quarter or for any later quarters.
It is OK to telephone HMRC and request time to pay. But if you have not requested time to pay and are late paying your VAT for the May 2020 quarter, or for any later quarters, you may become liable to a penalty.
If you have cancelled your direct debit arrangements for VAT payment, then you should now re-instate them. You should get in touch with your bank for this purpose.
Please be prepared to pay your VAT for the quarter to 31 May 2020, and for later quarters, by the due date, or else speak to HMRC and agree with them time to pay.
The above note is for general guidance only. Please contact us for specific advice in your circumstances before taking any action.
– By Stephen Handley, FCCA