This is an important note for any VAT registered businesses that wish to take advantage of the government offer not to pay their VAT falling due in the period 20 March 2020 to 30 June 2020.
If you choose to do that but pay by direct debit, HMRC have said that you need to cancel the direct debit in good time, to avoid the payment being taken automatically.
Remember that you will have to pay later and by the 5 April 2021 at the latest, so it is just a cash flow saving measure at the moment. Any businesses that remain unaffected or have sufficient reserves may choose to pay anyway.
Your VAT return will still need to be filed at the right time to take advantage of the offer.
There will be no penalties for paying late.
All UK businesses are eligible to defer and this will apply automatically without the need to contact HMRC.
If you are due a VAT refund this will be paid by HMRC as normal.
BAYLISS WARE
CHARTERED ACCOUNTANTS
26 MARCH 2020
