During this time, we can see many new government offered support for businesses and SMEs, so we are sharing all the news as we receive it. In this article, we are sharing the current insights for their newly shared VAT Deferral scheme to VAT registered companies.
Here are the current insights for the UK VAT Deferral Scheme:
- VAT liabilities arising during the period 20 March 2020 to 30 June 2020 will automatically be deferred by 3 months without the need to apply.
- Businesses will be given until the end of the 2020/21 tax year to pay any VAT arising during this deferral period.
- VAT reclaims and refunds will be processed as normal.Please note, VAT returns MUST still be filed, there is just no need to pay the VAT arising at this time due to the deferral relief.
- This is all in addition to the time to pay offer currently operated by HMRC.
We do not recommend you defer payments unless specifically required. This is based on provisional advice from the government, but do be careful, as you will still need to pay the VAT, even if deferred, so if you can continue to pay on time, as tax advisors, we recommend you do so.
