Deferred VAT Payments

As you may be aware, it was announced on Friday 20 March that one of the measures to ease financial burdens on businesses during this Covid-19 pandemic is the deferment of VAT return payments where these are due between 20 March and 30 June 2020.

This is taken to mean VAT return payments that are due one month and 7 days after the end of a VAT period that fall into this window of deferment. This will therefore mean VAT payments for the VAT periods ending 29 February, 31 March and 30 April 2020.

If you are due a repayment of VAT, do not worry, these will still be made by HMRC in the normal way.

VAT registered businesses will have until the end of the tax year to pay these liabilities. HMRC have yet to clarify whether this is in line with the end of the tax year for VAT (March, April, or May – dependent when your VAT returns fall), or 5 April, which is in line with the income tax year end. We will let you know when HMRC clarify this position.

If you are VAT registered, you should:

  • File VAT returns as normal (although payments have been deferred, VAT return filing requirements have not and you could therefore be liable to a late filing penalty)
  • If you pay by Direct Debit, please cancel this in the short term to prevent automated payments being made
  • If you are having trouble paying a previous VAT bill, please contact HMRC’s new helpline on 0800 0159 559 to discuss time to pay. This number can also be used if you are having trouble with other taxes.

Please contact Gavin Barker, VAT Director on 07936 334020 or  or your usual BGM/BGM Helmores contact if you have any queries regarding this or any other business related matter.

We will continue to monitor Government announcements and provide updates as the situation evolves over email, on our website , LinkedIn and Twitter account.

Please contact your BGM advisor or email if you would like any assistance.

Gavin Barker

VAT Director

Mark Cole

Senior Partner