COVID-19 VAT Payment Deferral FAQ

Our experts have put together a list of the most commonly asked questions following the announcement that VAT payments are set to be deferred.

Do I need to apply to HMRC to defer my payment?

The government has that this will be happening automatically, so you do not need to apply.

Am I still required to submit my return with my quarter-end being February 2020?

You will still have to submit your return by the due date as normal. However, as the payment date for this return is 7 April 2020, it falls within the deferment period. 20 March – 30 June 2020. As it stands, this arrangement allows until the end of the 2020/2021 tax year, 5 April 2021, for payment of liabilities that accumulated during the deferral period.

As a farming client I receive regular VAT repayments from HMRC; will this be impacted?

VAT refunds and claims will not be impacted. HMRC will be paying these out as normal.

I pay by direct debit; will this automatically stop?

HMRC’s system will not automatically suspend the collection of payments, as it cannot identify who intends to take advantage of the deferral.

HMRC have advised cancelling your direct debit with the bank if you are not able to pay. Please ensure you allow sufficient time (3-5 working days) for the bank's cancellation process to take effect.

Click here to see the updated guidance on the deferral of VAT payment.