Following our blog posted on 21 March [Click here], HMRC have now issued their guidance which clarifies the detail and addresses some of the questions that have arisen following the announcement.
- The deferment option, it seems is available to UK VAT registered business only. HMRC have again only referred to UK business, in their recent, more detailed guidance, and it therefore seems the deferment does not apply to a VAT registered overseas business that has no UK establishment.
- The deferment does not cover VAT MOSS payments.
- VAT returns do still need to be submitted.
- No interest or penalties will be charged on amounts deferred.
- There is no need to tell HMRC payments are being deferred.
- The amount deferred will have to be paid on or before 31 March 2021, and once the deferral period ends, payments will have to be made as they become due.
- If your business pays by direct debit and you are deferring payment, you will need to cancel this. If you do not, payment may still be attempted under the terms of the direct debit.
How we can help
If you would like to discuss further, please contact our VAT Director, Jas Dhillon, firstname.lastname@example.org or your usual Lubbock Fine contact.