The deferral for VAT payments applies from 20 March 2020 until 30 June 2020. All VAT registered traders are eligible. This will generally mean the deferral of one quarter’s VAT: the payment due on 7 April, 7 May or 7 June 2020 or the monthly payments due on each of these dates. This is an automatic offer and no application is required. Businesses will not need to make a VAT payment during this period.
If you pay VAT by direct debit, you should cancel the direct debit if you wish to take advantage of the deferral. HMRC will not cancel your direct debit if you wish to continue making payments.
You will need to remember to set it up again in due course. Agents cannot set up direct debit mandates on behalf of taxpayers.
Taxpayers have until the end of the 2020/21 tax year to pay any liabilities that accumulate during the deferral period. VAT refunds and reclaims will be paid by the government as normal.
Businesses should continue to file their VAT returns by the due date.