News

10th June 2020

Covid 19 Update 10th June 2020

VAT Deferment Ending 30th June 2020

Hello,

The measure introduced to help businesses is coming to an end soon. The VAT Return for the quarter ending 31st May 2020 will be the last return that is automatically deemed as deferred if you don't make the payment. So the next quarter June 2020 VAT returns will be payable as normal, this is because the due date for payment is after the 30th of June.

This will cause a problem for a vast number of businesses especially as businesses with a March, June, September, and December VAT stagger are the most common. Although restrictions are slowly being lifted I can't see that businesses who have been affected by COVID-19 will be a strong cash position by 10th August which is when the June VAT return amount will be payable.

Therefore I would suggest that if you haven't already looked at the CBIL's loans and the Bounce Back loans you should start to consider them as a sensible option.

https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/

https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan


I would also look to the "Time to Pay" team where paying you VAT returns after 30th June causes you a problem. The Time to Pay team existed prior to COVID-19 and so as normal practice businesses could contact the team in the event they were struggling to make a tax payment but we don't know what the approach is going to be by HMRC.

https://www.gov.uk/difficulties-paying-hmrc

Wishing you all well as always.

Very best

Nick Hunt