COVID-19 VAT Payment – Deferral

We provided an update previously that the UK Government was allowing VAT registered businesses to defer the payment of VAT due from March 21 to 30 June, due to COVID-19.  This covered VAT returns with a period end of 31 March, 30 April and 31 May.

The Government has not extended this further so any business that has taken advantage of the deferral will need to reinstate their direct debit with HMRC well in advance of their next return being due or pay their VAT to HMRC manually.  Those paying manually must make the payment by close of business on the 7th of July (for VAT returns to the period ending 31 May).

For businesses who have deferred VAT payments, this will need to be paid to HMRC by 31 March 2021 so this will have to be factored into cashflow planning.  If any business is concerned about their ability to pay this or subsequent VAT debts it should contact HMRC to arrange a time to pay arrangement.  Please feel free to contact our VAT team if you have any queries about the COVID-19 VAT Deferral at