Businesses urged to reinstate VAT direct debits

Business have been reminded to reinstate their direct debit mandates before the deferral of VAT payments due to the coronavirus (COVID-19) comes to an end on 30 June.

Burrows Scarborough in Coventry - call 024 7671 7633 or email info@burrows-scarborough.co.uk
Harwoods in Sutton Coldfield – call 0121 355 0901 or email info@harwoods-account.co.uk

Business have been reminded to reinstate their direct debit mandates before the deferral of VAT payments due to the coronavirus (COVID-19) comes to an end on 30 June.

The VAT payment deferral means that all UK VAT-registered businesses have the option to defer VAT payments due between 20 March and 30 June 2020 until 31 March 2021.

However, businesses need to take steps to reinstate their direct debit mandates so that they are in place in time for payments due from July 2020 onwards. Any outstanding returns should be filed and three working days should be allowed to elapse before reinstating the direct debit mandate.

The Tax Faculty at the Institute of Chartered Accountants in England and Wales (ICAEW) said: 'HMRC has confirmed to the Tax Faculty that it will not collect the outstanding balance of deferred VAT when the direct debit mandate is reinstated. HMRC has made the necessary systems change to avoid this happening for businesses in Making Tax Digital for VAT (MTD for VAT).

'Arrangements will also need to be made to pay the deferred VAT by 31 March 2021; further guidance is awaited from HMRC on the mechanism.'

Why you should choose us...

We continue to build on our enviable reputation for providing excellent advice and first class service to our business and personal clients alike.

Learn more

Latest news
Sutton Coldfield

Please call:
0121 355 0901

1 Trinity Place, Midland Drive, Sutton Coldfield B72 1TX
Coventry

Please call:
024 7671 7633

Sovereign House, 12 Warwick Street, Earlsdon, Coventry CV5 6ET

Home | Contact us | Site map | Accessibility | Disclaimer | Help |

© 2020 Burrows Scarborough Limited. All rights reserved. powered by totalSOLUTION

We use cookies on this website, you can find more information about cookies here.

Burrows Scarborough and Harwoods are practicing names of Burrows Scarborough Limited, which is registered in England - Company Number 4939546.
Registered to carry on audit work in the UK & Ireland by the Institute of Chartered Accountants in England & Wales - Firm number C001078720