On Friday the Chancellor of the Exchequer announced that all businesses in the UK are eligible to defer any VAT return payments falling due from the period of 20/03/2020 to 30/06/2020.
In practice we understand that this is available to anyone that is VAT registered, individuals, not for profit bodies and businesses. This is an automatic offer with no applications required. It means that no VAT payment needs to be made during this period.
Taxpayers have until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. HMRC stated that VAT refunds and reclaims will be paid by the government as normal.
Anyone that is having difficulty paying an earlier VAT liability should contact HMRC and agree an additional Time To Pay arrangement with HMRC. This is some positive advice in a challenging time for all businesses. If you have any questions, please do not hesitate to contact our VAT team.
Following the announcement on Friday and the further updates the UK Government have released, please read the important points below, regarding the support for businesses through deferring VAT and Income Tax payments:
At Wilkins Kennedy, we are here to help. If you have any questions regarding the points raised above, please do not hesitate to contact a member of our VAT team.
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