Reminder: End of VAT Deferral Scheme and Action Required

HMRC’s VAT deferral scheme ends on 30 June 2020.  This means that businesses must pay any new VAT liabilities due to HMRC by the relevant deadline, i.e. 7 July for May period end VAT returns and so forth.

If you previously cancelled a direct debit for VAT, you will need to set this up again at least 3-5 working days before the VAT return is due. This can be set up through your business’s own Government Gateway account or by sending a completed and signed VATC9 form to HMRC’s Direct Debit Support Team as soon as possible. Alternatively you can make the next payment manually to HMRC.

Setting up a new direct debit will not result in HMRC debiting any deferred VAT. This remains payable in full to HMRC by no later than 31 March 2021 and can be paid in either instalments up until that date, or in a lump sum at any point.

If you make manual payments, no action is required at this point, but please remember to pay any monies due in relation to your next VAT return by the relevant date.

If you are due to make a payment to HMRC, but are experiencing genuine difficulties in making the payment, you may contact HMRC’s Time to Pay service as soon as possible.

If you have any queries, please contact your usual BGM advisor or email Gavin Barker, VAT Director (