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Global VAT Group COVID-19 Measures

United Kingdom COVID-19 VAT Measures

Correct as of 3 April 2020

On 20th March 2020, the Chancellor of the Exchequer announced that all VAT payments due between the dates 20 March to 30 June 2020 would be suspended. This meant that VAT payments due for the VAT returns (monthly or quarterly) ended 29 February 20 (“02/20”) 31 March 20 (“03/20”) and April 20 (“04/20”) were affected as the payment due dates for these VAT returns fell into the VAT “holiday” period.

The suspension is automatic and there are no forms to complete, etc. However, this is a suspension of payments, not of the requirement to complete and submit the relevant VAT returns which must still be done. 

Since then there has been further clarification, the suspended payments must be made to HM Revenue & Customs by 31 March 2021. Businesses that use direct debits to pay their VAT must contact their banks to cancel the direct debit otherwise payment will be made automatically.

Whilst the suspension also applies to larger businesses who make payments on account (where the payments fall due between 20 March and 30 June) they do not apply to payments due under the Mini One Stop Shop (MOSS) scheme, nor to any assessments raised in the period that relate to earlier VAT periods.

For further information contact:

Ian Marrow
Rickard Luckin

Chelmsford, United Kingdom

E: ian.marrow@rickardluckin.co.uk
T: +44 1245 254219

 

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