One of the first announcements that Chancellor Rishi Sunak made in support of businesses suffering as a result of the COVID-19 outbreak was the “VAT payment holiday”.
This support measure was introduced so that any VAT payment with a due date falling between 20 March 2020 and 30 June 2020 would be suspended and instead repaid to HMRC by 31 March 2021. The suspension was automatic and HMRC would not seek to apply interest or penalties to the amounts suspended.
For most VAT returns the due date is the 7th day of the second month after the VAT period ends, so for example, a VAT period ending 30 April has the payment due date of 7th June. Therefore, that effectively means the VAT holiday “ends” on 7th June for most VAT registered businesses; as the next due date for return payments will be 7th July. So VAT registered businesses whose last VAT quarterly return period ended 29 February 2020 or later, are now past the VAT payment holiday. For those VAT registered businesses on monthly returns, the 04/20 period is the last return covered by the original announcement.
If you believe you will have difficulty in paying the VAT that is due post 30 June, you can still contact HMRC to see if you can agree a time to pay arrangement (if you do, ensure you take good notes including the call reference as HMRC will not write to you setting out what has been agreed). However, the automatic application of payment suspension will not apply.
Of course, if you have any questions regarding any of the above, or a separate VAT issues please do not hesitate to contact Ian Marrow, Director at Rickard Luckin at email@example.com