SME Businesses & Sole Traders: VAT Deferral

The following information is based on the information publishes as of 26 March.

The UK government is supporting businesses during the coronavirus pandemic by deferring VAT payments to improve businesses cash flow. VAT payments due before 30 June 2020 will not need to be made until 31 March 2021. No application is needed but you need to ensure that direct debit mandates are cancelled well in advance.

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Eligibility

Applies to all businesses registered for VAT and due to make return during the period March - June 2020. Scheme may be further extended depending on circumstances.

Defferal only applies to payment, you are still required to file your return on time.

How to Claim

No application needed, but direct debit mandate needs to be cancelled through your bank.

What is due date for deferred payment?

If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to:

- defer the payment until a later date (latest due date for payment is on or before 31 March 2021).

- pay the VAT due as normal

After the VAT deferral ends

VAT payments due following the end of the deferral period will have to be paid as normal.

Important Note

If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a SCAM.