VAT Payment Deferrals
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In response to the coronavirus outbreak, the government has announced assistance for VAT registered businesses.
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Those registered for VAT will be able to defer VAT payments form 20 March to 30 June 2020.Â
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This means that any VAT liabilities due for the period mentioned above will be deferred, should the business choose to, until three months thereafter.
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This is a de facto payment holiday of three months, offering a very welcome fillip to cash flow for businesses at this time.
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HMRC have confirmed that any rebates and refunds in respect of VAT will be issued in the usual manner.
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It is also important to file your VAT Return on time in the usual way, under Making Tax Digital, in order to avoid a late filing penalty.
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This is especially important at this time as the government needs to monitor business income and expenditure and take a view of the forward planning of VAT coming into the treasury.
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Please note, the VAT due in this period will still be due for payment in three months time; this is a payment holiday, called a deferral, and not a tax break.
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Ask Us For Help
 We are here to help and have set up a dedicated team to help you during this crisis.Â
If you are considering using this scheme or have any queries about this measure, please email coronavirus@switchaccountants.co.uk and we will contact you to discuss your exact situation.