Don’t forget to fire back up your VAT direct debit!
The deferral of VAT payments due to coronavirus ended on 30 June and businesses need to take action to reinstate their direct debit mandates, so that they are in place in time for payments due from 1st July 2020 onwards.
To be effective, direct debit mandates usually need to be set up three working days before a VAT return is filed. HMRC has confirmed that it has made the necessary system changes so that it will not collect the outstanding balance of deferred VAT when the direct debit mandate is reinstated.
Arrangements will also need to be made to pay the deferred VAT by 31 March 2021, either in full or through additional payments with subsequent returns.
From 1st July VAT returns should be submitted as normal, on time and with payment made in full.