On 20 March 2020, HMRC announced a deferral scheme for VAT for all UK businesses to help them manage the impact of COVID-19. This also now applies to businesses that are not established in the UK but are registered for VAT here.
VAT payments will be deferred for three months beginning on 20 March and ending 30 June. For those on standard quarterly VAT returns, the returns affected will be –
- February 2020, due on 7 April
- March 2020, due on 7 May
- April 2020, due on 7 June
Therefore, the deferral will not apply to the next set of returns being –
- May 2020, due on 7 July
- June 2020, due on 7 August
- July 2020, due on 7 September
VAT returns will need to be submitted but any VAT due will not be payable until the end of the financial year - 31 March 2021.
Richard Staunton, VAT Partner at Gerald Edelman, explains this further in his article: Government defers VAT payments to help businesses manage cash flow during the COVID-19 crisis.Back to top