Businesses that have cancelled their direct debit in order to defer VAT payments are being reminded by the ATT to set up a new one soon.
If firms fail to get a direct debit set up in time, it could result in the business paying their VAT bill late – and ultimately receiving a penalty charge.
As part of the government’s package of Covid-19 support, all UK VAT registered businesses have been able to defer VAT payments due between 20th March and 30th June 2020 until 31st March 2021 at the latest.
Co-Chair of ATT’s Technical Steering Group, Michael Steed, commented, “The VAT deferral ceases to apply from 1st July, meaning that from that date businesses will have to pay their VAT bills on the normal due date.”
He added, “If a business has previously cancelled their direct debit mandate in order to defer a VAT payment, they need to set up a new one in plenty of time to ensure that their next, non-deferred, VAT payment can be taken in time.
“Businesses with a VAT quarter ending 31st May need to move quickly to make sure they set up their direct debit in time for payment to be taken by the 7th July 2020 deadline.
“Failure to get a direct debit set up in time could result in the business paying their VAT bill late, and ultimately result in them being charged a penalty.”
To find out more about contracting please contact Jaime on 01442 795 100 or email firstname.lastname@example.org.