The deferral of VAT payments due to coronavirus came to an end on 30 June 2020 and businesses that had cancelled their direct debits need to reinstate them.
The VAT payment deferral means that all UK VAT-registered businesses had the option to defer VAT payments due between 20 March 2020 and 30 June 2020 until 31 March 2021, without incurring late payment interest or penalties.
You must reinstate the direct debit mandate so for payments from now and onwards. Any outstanding returns should be filed and three working days should be allowed to elapse before reinstating the direct debit mandate.
Agents cannot set up direct debit mandates on behalf of clients, the business needs to set up the mandate through their business tax account.
Remember, any VAT payments you have deferred during this period should be paid in full on or before 31 March 2021. You can make ad hoc payments or additional payments with your subsequent VAT returns to reduce the amount outstanding, if you wish.
If you’re unable to pay the VAT due and need additional time to pay, please contact HMRC before the payment is due, or alternatively please contact us so we can assist you. For help go to GOV.UK and search for ‘If you cannot pay your tax bill on time’, or call 0300 200 3835. If you do call, please quote ‘V1’.
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