VAT Deferral – Remember to cancel your direct debit

VAT Deferral – Remember to cancel your direct debit

As part of the Chancellor’s package of measures to support businesses, VAT payments can be deferred, but VAT returns should be submitted on time. The payment deferral will apply for payments due between 20 March 2020 and 30 June 2020.

The offer is open to all UK businesses and will apply automatically with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until 31 March 2021 to pay any liabilities that have accumulated during the deferral period. This means that businesses will automatically qualify to defer payment of the VAT due on their VAT returns for the VAT periods ending February, March or April 2020. VAT refunds and reclaims will be paid by the government as normal.

Please remember however that if you normally pay your VAT by direct debit and want to avail of the offer, you must remember to cancel your direct debit with your bank. Please to do so in sufficient time so that HMRC does not attempt to automatically collect the amount due on receipt of your VAT return.

Finally, there is no reference to foreign businesses that have a UK VAT registration, but it is reasonable to assume that the deferral would apply.

Please call us for specific advice on your circumstances – 01633 810 081 or email us at