Press Room

26 Jun 2020

Covid-19 – reminder to reinstate VAT direct debits

As a result of the Covid-19 outbreak, UK VAT registered businesses were able to defer VAT payments due between 20 March 2020 and 30 June 2020 to help manage cash flow.

Businesses who normally pay by Direct Debit who chose to defer VAT payments will have cancelled their Direct Debit through their bank to ensure that HMRC did not automatically collect any VAT due.

The deferral period is due to end on 30 June 2020 and VAT payments that are due after this date will need to be paid as normal.

Businesses which have cancelled their Direct Debits will have to ensure that they are reinstated by the due date for payment. We recommend this is done at least three working days before payment is due to avoid the risk of being caught under the default surcharge regime.

Sarah Shears

Sarah is head of the VAT Group. She has a deep indirect tax technical knowledge of across a number of sectors, connecting complex tax technical issues with practical and commercial application.

Email: Sarah Shears