It has been announced today, March 23rd, that HMRC are deferring VAT payments for all businesses in the UK for a period of 3 months up to June 30th of this year. This is of course to lessen the load for businesses who are being badly affected by the coronavirus pandemic.
The VAT Deferral Is Automatic
This VAT deferral applies from March 20th through to June 30th and the deferral will be automatic for all businesses, so there is no need to apply for this, you just don`t need to make a VAT payment during this period.
Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.
Great Period Of Uncertainty For Businesses
This is a welcome measure for businesses but there is no doubt that there is a great deal more to be done if many businesses are going to survive this huge period of upheaval whilst we are in the midst of the coronavirus pandemic. One of the worst things about this situation is the uncertainty of it all, nobody knows how long cafes, restaurants and pubs will be closed for, or if other businesses will soon follow suit and be ordered to close.
Most businesses are just taking it day by day at the moment as they just don`t know what will happen next, but because of this business to business sales have plummeted which has impacted enormously on the economy.
Tax & Financial Advice
We are of course here to offer as much help and advice as we can, so if you would like to discuss your current financial situation and tax issues etc with us just pick up the phone. We are not doing any face to face meetings but we can talk over the phone, our number is 028 3752 2909.
Meanwhile please stay safe, stay indoors if you possibly can, but if you do go out keep a good distance from your fellow humans to protect both yourself and everyone else.