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The HMRC has announced temporary changes to the VAT payments due between 20 March 2020 and 30 June 2020 to help businesses manage their cash flow.
UK VAT registered business with a VAT payment due between 20 March 2020 and 30 June 2020 now have the option to defer the payment until a later date or pay the VAT due as normal, the HMRC has said in a notice posted on its website.
The tax authority has confirmed it will not charge interest or penalties on any amount deferred as a result of the announcement.
The HMRC set out that VAT payments that can be deferred include:
The deferral does not cover payments for VAT MOSS or import VAT.
The HMRC noted it will continue to process VAT reclaims and refunds as normal and most repayments will be paid within five working days.
"Repayments will not be offset against any deferred VAT, but they will be offset against existing debts," it said.
"You can apply online to move to monthly returns to improve your cash flow if you’re in a repayment position."
The HMRC reminded that those that choose to defer their VAT payment as a result of coronavirus, must pay the VAT due on or before 31 March 2021.
For more information, click here.