During the Corona Virus pandemic, the Government will be supporting businesses in many different ways.
In his announcement on Friday 20th March, Chancellor Rishi Sunak offered businesses help by allowing them to defer their VAT payments.
Businesses will be given until April 2021 to pay any liabilities that have accumulated for VAT periods ending February, March and April 2020.
All UK VAT registered businesses will be eligible for the deferment and it will be applied automatically – there is no need to apply direct to HMRC.
There will be no penalties or interest charged in the deferral period.
We suggest you cancel any direct debit instructions you have with HMRC with your bank. We can help set this back up at a later time.
For those of you that are due to receive a VAT refund, HMRC will continue to pay these as normal.
Information last updated at 2pm, on 6 April 2020.
The above is our understanding of this policy and how this will work based on the information published so far. It should not be relied on for advice at this stage but is intended to give an indication of how the scheme will work.