With the deadline for the deferral of VAT payments due to Coronavirus having now passed on 30 June. Businesses that made use of the deferral scheme will now need to reinstate their direct debit mandates or potentially face late payment charges.
The VAT payment deferral has meant that all UK VAT-registered businesses had the option to defer any VAT payments due between 20 March and 30 June 2020 until 31 March 2021.
Businesses should now take steps to reinstate their VAT direct debit so that this is in place in time for payments due in July 2020 onwards.
Please note, agents cannot set up the VAT direct debit on behalf of their clients and businesses need to set up the direct debit through their business tax account.
HMRC have confirmed that they will not collect the outstanding balance of deferred VAT when the direct debit is reinstated. Noting that they have made the necessary changes to avoid this happening for businesses in MTD for VAT.
If your business requires any support in relation to VAT, or any other tax matters, do not hesitate to contact us.