Update - HMRC VAT payment deferral period ends on 30 June

23rd June 2020

To help businesses and self-employed workers manage their cash flow during the pandemic, HMRC introduced deferred VAT payments due between 20 March and 30 June 2020. Now that this deferral period is coming to an end, businesses are being warned that those that chose to defer VAT payments and had cancelled their bank direct debit mandates as HMRC suggested, should now set up new arrangements to pay their next VAT bill at least three working days before submitting their VAT return, or risk being fined.

From 1 July 2020, VAT returns need to be submitted as normal, and on time, with the VAT paid in full.