VAT and the Coronavirus

clare222

Hi all, I have been trying to contact the VAT helpline with no success (not surprising considering the current circumstances). I know that VAT can be deffered by 3 months form 20/03 to 30/06. If a client has a VAT return from the quarter ending 29th Feb 2020 (submission and liability to be paid by 7th April) do they still have to pay this liability or is this included in the deferrement scheme or will we have to contact the Time to Pay scheme? Also can I assume VAT returns still need to be submitted but liability not paid? Any help gratefully received.

amurray

Hi Clare,

I am not 100% sure on your first point re the 29th Feb quarter end return. Think that would certainly be a question for HMRC.

However I do know that VAT Returns still need to be filed going forward, but the VAT Liability will be deferred, currently to 30/06.

Aleem Islan

The HMRC guidance on "Deferral of VAT payments due to coronavirus (COVID-19)" can be found here:
https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

It states:
"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
- pay the VAT due as normal..."

The guidance is clear that it is dependent on "VAT payment due" and the previous response by amurray is correct that the VAT returns still needs to be filed.

There are other issues that you may need to be aware of so please refer to the HMRC guidance (link above).

MichaelBeechFMAAT

I think one of the hardest things I actually encountered from a minority of client is a basic understanding that normal filings still take place. One client said to me " oh we still have to do the VAT? I thought this had been delayed" , answer being yes we still have to do the VAT Return + file it , you can defer payment of it, but we still need to be filing regular stuff as usual. For us, a lot of our work continues in this vein.

JaneB

Seeking clarification please, I've heard conflicting advice regarding how long VAT payments can be deferred by. A Jan-Mar 2020 VAT quarter payment would normally be due on the 7th May unless paying by direct debit, if one chooses to defer due to coronavirus should this be paid within three months i.e. 7th August 2020 or does it have to be paid by 31st March 2021? Thanks in advance

douglasstroud

31st March 2021 is my understanding of the deferral