- HMRC have issued guidance setting out the process for deferring VAT payments for three months under Making Tax Digital (MTD).
- VAT deferral is available to all UK VAT registered businesses for a three-month period from 20 March 2020 and 30 June 2020.
- HMRC will continue to process VAT reclaims and refunds as normal during this time.
- HMRC’s guidance on VAT referral will need to be used alongside VAT Notice 700/22 to ensure full compliance with MTD.
- HMRC will not charge interest or penalties on any amount deferred.
- You will still need to submit your VAT returns to HMRC on time but will not be required to make the payment if you choose to defer.
- HMRC has also deferred MTD’s mandatory requirement to report through digital links until their first VAT return period starting on or after April 2021.
Aspire Business Partnership ("Aspire") provide WK1 with practical and commercially sound advice in relation to all aspects of compliance, business strategy and conflict resolution. WK1 engage Aspire on a retained basis through which Aspire provide WK1 with advice on an ad-hoc basis.
https://www.aspirepartnership.co.uk/News/3432/covid-19-clarification-on-deferring-vat-payments
