The CIOT are reminding businesses that wish to defer VAT return payments, to ensure they cancel their direct debit in good time for VAT returns that are due on Thursday 7th May.
The government announced on 20th March 2020 that taxpayers could defer VAT return payments arising in the period up to 30th June 2020, only having to pay those deferred amounts by 31st March 2021.
The next due date for monthly and quarterly VAT returns is 7th May 2020, and so businesses wishing to take advantage of the deferral should cancel any direct debits as soon as possible, and ideally five working days before the filing date of the return.
If businesses do not cancel the direct debit, HMRC will collect any VAT due as usual. The VAT deferral easement also includes interim and balancing payments for the payments on account scheme and VAT payments for annual accounting where these payments would normally be due in the period from 20th March to 30th June 2020.