In March, the Chancellor announced that businesses could defer VAT payments due between 20 March and 30 June 2020 until 31 March 2021. This temporary change to the payment dates was introduced to help businesses manage their cashflow.
The VAT deferment period is now drawing to a close, therefore if you cancelled your direct debit or other payment method this needs to be reinstated.
Please do this well in advance of your normal VAT payment date so the payment is collected on time. If the payment is late, HMRC could charge interest and penalties.
If you are struggling to pay your tax bill on time, you may be eligible for HMRC’s Time To Pay service. This can allow a business to clear tax debts by making instalments over a 3 to 12 month period.
Businesses should continue to file their VAT returns as normal by the due dates.
If you have any questions about your VAT, please contact us.
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