COVID-19 VAT deferment

Deferment of VAT payments is effective immediately. Businesses should cancel their VAT direct debits to HMRC now; otherwise payments will still be taken automatically. 

These VAT direct debits should be restarted after 30 June 2020. The deferment applies to VAT payments due to be made to HMRC between 20 March 2020 and 30 June 2020.  HMRC says that interest will not be applied to the deferred VAT payments.

However, VAT returns must still be submitted on time: it is only the payment which is deferred.