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.
Thinking of appointing Dolan Accountancy?
Give us a call on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.
Email JaimeJohn Cullinane, Tax Policy Director at the CIOT, commented, “Hundreds of thousands of businesses will be getting their Coronavirus Job Retention Scheme grants this week – but they should not forget about the other government help which can assist cash flow in a time when financial pressures are high.”
For those businesses that require additional financial assistance, HMRC has enhanced its ‘Time to Pay’ system and has opened a dedicated helpline for those experiencing financial distress as a result of the Covid-19 measures and find themselves unable to pay their tax on time or have other existing tax liabilities: 0800 024 1222.
To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com
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