HMRC reminder – deferring of VAT payments ends on 30 June

As part of the government’s support for businesses during COVID-19, HMRC gave businesses the option of deferring their VAT payments if they were unable to pay on time, without incurring late payment interest or penalties. Payment of VAT falling due between 20 March and 30 June 2020 can be deferred until 31 March 2021.

HMRC says you must continue to file your VAT return on time, even if you defer payment.  The option to defer paying VAT ends on 30 June 2020, which means that VAT returns with a payment due date after 30 June must be paid in full, on time.

Businesses that have not deferred any VAT payments do not need to take any further action. If you have deferred paying your VAT and normally pay by Direct Debit you should now reinstate it.  This should be done at least three working days before submitting your VAT return in order for HMRC to take payment. For further details go to GOV.UK and search for ‘Pay your VAT bill’.

Any VAT payments you have deferred during this period should be paid in full on or before 31 March 2021. Ad hoc payments or additional payments can be made with subsequent VAT returns in 2020 to reduce the amount outstanding.

If you’re unable to pay the VAT due and need additional time to pay, please contact HMRC before the payment is due – read more.

There is more general advice on business support here.