Wednesday, 24 June 2020

VAT registered businesses advised to reinstate VAT direct debits

The VAT payment deferral comes to an end on the 30th June. The deferral gives businesses the option to defer VAT payments falling due between the 20th March and 30th June until the 31st March 2021.

Businesses who are registered for VAT have been advised to reinstate their direct debit mandate, to ensure any VAT payments becoming due from the 1st July 2020 onwards are not late. The direct debit can be setup via the online tax account.

The Institute of Chartered Accountants in England and Wales (ICAEW) said: 'HMRC has confirmed that it will not collect the outstanding balance of deferred VAT when the direct debit mandate is reinstated. HMRC has made the necessary systems change to avoid this happening for businesses in Making Tax Digital for VAT.

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