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24 March 2020COVID-19
We have included below some frequently asked questions for VAT.
A. HMRC announced an automatic deferral of payment for the next quarterly return, either 02/20, 03/20 or 04/20. Payment can be made as late as March 2021.
A. No, it is automatic
A. No, so no Default Surcharge or interest is charged.
A. Yes, all payments (regular monthly and balancing payments) due between the dates 20 March to 30 June are within the automatic deferral. Remember to cancel any Direct Debits if you make payments using this system.
A. It is not clear, but if the situation is unchanged, we expect that it will be extended.
A. Continue to submit returns on time.
A. No, this submitted return would be inaccurate and could attract penalties.
A. Yes, unless you contact the VAT Time to Pay team and request a payment plan or an amendment to an existing payment plan.
A. Yes. Repayment returns are sometimes checked by HMRC before the repayment is released; these enquiries will continue.
A. Import VAT is not part of the VAT deferral scheme explained above. Once the amount due is known, after the end of March, call the HMRC Time to Pay team and seek a payment plan.
A. You will have to negotiate a Time to Pay agreement individually with HMRC, by calling the Business Payments Support Service on 0800 015 9559 or 0300 200 3835. Initially at the start of the covid-19 pandemic, HMRC refused to defer excise duty, but the Wine & Spirits trade association contacted HM-Treasury, who confirmed that excise duty should be capable of deferral, and have instructed HMRC, so that new applications for time to pay are likely to be successful.
If you have any questions, please don't hesitate to contact one of our team or your ususal James Cowper Kreston contact.