VAT during COVID-19 Crisis – correct at 23 March 2020

No VAT needs to be paid from now until 30 June 2020.  This is part of the Government’s actions to assist businesses during the Covid 19 epidemic.  However, this is merely a loan and VAT returns will still have to be sent in on time.  The VAT is postponed and, depending on your normal VAT return periods, the VAT will be paid on 31 March 2021 or on 30 April 2021 or on 31 May 2021.  If returns are sent in monthly then the date for payment is 31 March.

There is no mention of interest being charged.

Repayments of VAT will continue to be made on time.

The procedure is automatic.  You do not need to do anything. However, if you pay by Direct Debit, it might be safer to cancel it rather than rely on HMRC.

The official statements do not refer to situations where people say “no thank you I will still pay over the VAT.”  Our inclination is therefore to accept the postponement but remember it is just that.