Many businesses have taken advantage of HMRC’s concession to defer VAT payments falling due between 20 March and 30 June 2020. If you have used this concession, and as a result cancelled your direct debit, do not forget to reinstate the direct debit mandate in time for any VAT payments falling due on or after 1 July 2020. Failure to do so will result in daily interest being levied, and could result in a VAT default surcharge penalty.
You are advised to file any outstanding VAT returns and to allow three working days to elapse before you reinstate the mandate. HMRC have confirmed that they will not collect the VAT outstanding from the period 20 March to 30 June 2020 via the direct debit.
At Whiting & Partners we are doing everything we can to help ease the burden you and your business are under during these worrying and uncertain times. If you would like to speak to someone about VAT please reach out to your usual Whiting & Partners contact.