The Government have also announced the deferral of VAT payments for 3 months from 20 March 2020 until 30 June 2020 to assist their cash flow. All VAT registered traders are eligible. This will generally mean the deferral of one quarter’s VAT, the payments due on 7 April, 7 May or 7 June 2020 or the monthly payments due on each of these dates. This deferral will be automatic, however it is unclear whether HMRC will automatically suspend collection of direct debit payments of VAT during this period so we suggest that you cancel your direct debit mandate but remember to set it up again in due course. Businesses have until the end of the 2020/21 tax year to pay any VAT liabilities that accumulate
VAT refunds and reclaims will be paid by the government as normal. Businesses should continue to file their VAT returns by the due date to avoid penalties.