DEFERRAL OF VAT

THE HEADLINESto edit.

​THE ANNOUNCEMENT
The Chancellor announced a VAT payments deferral on 20 March 2020 to support businesses through the COVID-19 outbreak, to ease cash flow

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ELIGIBILITY

KEY FACTS
Each lender will have there own criteria, but to eligible to apply your business must meet the following;

• ​Be UK based business 
• VAT registered
• Does NOT cover VAT MOSS (MINI ONE STOP SHOP) payments, Import VAT and/or Duty where formal Time to Pay Arrangements will need to be agreed with HMRC instead.

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WHEN

Deferral available now, from 20 March 2020 to 30 June 2020.
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​DEFERRAL OPTIONS

If you a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the options of:

• defer the payment until a later date, paying any vAT due on or before 31 March 2021; or
• pay the VAT due as normal

VAT reclaims and refunds will be processed and paid as normal during this time
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HOW TO APPLY

​YOU DO NOT NEED TO APPLY or inform HMRC that you are deferring your payment, You will however still need to submit your VAT returns to HMRC on time, as usual.

​If you normally pay by direct Debit, you should cancel this payment ASAP if you are deferring payment, just in case HMRC's systems attempt to automatically collect on receipt of the VAT return.
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​REPAYMENT AND FEES

Deferred VAT must be paid by 31 March 2021

IMPORTANT - CAUTIONARY NOTE: This is a deferment, you will still be responsible for paying 100% of the VAT due, and should consider the impact on current and future cash flows and borrowing

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​FURTHER SUPPORT WITH TAXES

Help is also available with other taxes - see our separate guidance
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