Coronavirus Related VAT Deferral: Cancel DD with Bank

It is fairly well publicised now that as part of the Government’s financial support package for businesses during this Coronavirus outbreak, these businesses can, if they wish, defer their next VAT payment(s) (those due between 20 March and 30 June 2020). Interest and penalties will not be charged on such a deferral. What was not immediately clear until recently, however, was that if these payments are usually automatically collected by HMRC by a direct debit authority, that you will now need to cancel this authority with your bankers.

Disclaimer - All information in this post was correct at time of writing.