Last updated 30.03.20
Further to our recent article on HMRC extending their Time To Pay (TTP) service, it was also announced late on Friday 20 March that the government will automatically defer any VAT liabilities arising for payment between 20 March 2020 and 30 June 2020.
The payments will not need to be made until the end of the 2020-2021 and it has been confirmed that interest or penalties will not be levied. This is an automatic deferment and there is no need for businesses to make a formal claim to HMRC. Instead, a business should simply not make payment to HMRC.
We would recommend that any business wanting to defer their VAT liability during this period that normally has their VAT collected by direct debit to contact their bank to cancel this arrangement to ensure that the VAT isn’t collected.
This cash flow injection to businesses will be welcome news to business owners in the current climate.
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