Businesses looking to defer their VAT payments must act now and cancel their direct debits or payments will still be taken by HMRC.

As mentioned on 20/03/20 VAT payments between 20/03/20 and 30/06/20 can be deferred until the end of the 2020/21 tax year. This will generally mean quarter payments normally made on 07/04/20, 07/05/20 and 07/06/20 or monthly payments made on all of these dates. This is automatic and no application needs to be made. Businesses will not need to make a VAT payment but VAT returns must still be filed. If you are taken ill and can not file your return on time then you will be able to appeal any penalty.

If you normally pay your VAT by direct debit, HMRC have confirmed the payment will still be collected and you will need to cancel the direct debit with your bank. It is also important to remember to set up the direct debit again following the deferment period to ensure future payments are not accidentally missed.