Don’t forget to re-instate your direct debit if you have used the VAT deferral scheme

VAT registered businesses are able to defer their VAT payments falling due in the period between 20 March and 30 June 2020 until 31 March 2021.
 
If you have used the VAT deferral scheme and have cancelled your direct debit, please remember to re-instate this for any VAT payment due after 30 June 2020.  For many businesses this will come into effect for their VAT return for the quarter ended 31 May 2020.  You will need to set up your direct debit at least three working days before you submit your VAT return and by 3 July for the payment to be collected by HMRC on 10 July.
 
HMRC has confirmed that it will not collect the outstanding balance of deferred VAT when the direct debit mandate is reinstated. HMRC has made the necessary systems change to avoid this happening for businesses in Making Tax Digital for VAT.

If you are struggling to meet your VAT payment, you can contact HMRC and request a time to pay arrangement.
 
If you have any queries please contact your local Moore adviser.
 

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