Svetlova LLP

Deferral of VAT payments due to coronavirus (COVID-19)

March 30th, 2020

The government announced temporary changes to the VAT payments to help businesses manage their cash flow.

If you’re a UK VAT registered business and have any VAT payments due between 20 March 2020 and 30 June 2020, you have the option to defer the VAT payment until a later date or you can pay the VAT due as normal.

HMRC will not charge interest or penalties on any amount deferred.

Please note that you will still need to submit your VAT returns to HMRC on time.

If you choose to defer paying your VAT

If you choose to defer your VAT payment as a result of coronavirus (COVID-19), you must pay the VAT due on or before 31 March 2021.

You do not need to tell HMRC that you are deferring your VAT payment.

If you’re in temporary financial distress because of COVID-19

If you are experiencing financial difficulties more help is available from HMRC’s Time to Pay scheme here.