The End of VAT Deferral
VAT Deferral Scheme
Many businesses will have taken advantage of the Governments VAT Deferral scheme which allowed a business to defer until 31/3/2021, without penalty, the VAT due to be paid on VAT returns with a due date ending between 20 March 2020 and 30 June 2020; essentially payments due for the quarterly VAT returns ending 28 February, 31 March and 30 April.
In taking advantage of the scheme a business was required to cancel their direct debit in good time so that payment for the VAT return was not taken by HMRC.
Businesses would then need to reinstate their direct debit early enough for any payment due outside of the deferral period to be taken by HMRC. If not, the payment may be late and the business could suffer a default surcharge.
The VAT that is due on the VAT return ending 31 May 2020 is payable on/by 7 July 2020 and is outside of the deferral period.
Have you/your client reinstated their direct debit?
Related News Articles
Government to Raise Income Threshold for Self-Assessment Reporting and Launch Simple Online Tax Payment System
Move expected to reduce administrative burdens for up to 300,000 taxpayers The Government has announced its intention to raise the income threshold at which individuals are required to register for Self-Assessment. This change will affect taxpayers with low levels of trading, property, or miscellaneous income and forms part of a broader package aimed at simplifying…
Mandatory Real-Time Reporting of Benefits in Kind Delayed Until April 2027
HMRC delays mandatory payrolling of most employee benefits by one year HM Revenue & Customs (HMRC) has confirmed a 12-month delay in the implementation of mandatory real-time reporting for most benefits in kind (BiKs). Initially expected to come into force in April 2026, the requirement will now apply from April 2027. This extension follows feedback…
Advanced Notification – to opt in, or not to opt in, THAT is the question?
First, let’s recap on the rules. If a client wants to make a claim for Research and Development (R&D) tax relief or expenditure credit for accounting periods beginning on or after 1 April 2023, we need to submit a claim notification form if: The client is claiming for the first time; or The last claim…