VAT Payment Holiday
As part of a series of measures to assist businesses during lockdown, the Government has confirmed details of a VAT deferral scheme.
Businesses may postpone payment of any VAT that is due between 20 March and 30 June 2020. Interest and penalties that would otherwise be incurred for a late payment of VAT will be waived for payments of VAT due between these dates.
This 'payment holiday' applies to all VAT payments due between these dates i.e.. VAT returns for periods ending February, March or April 2020.
Businesses do not need to apply to access the deferment scheme. HMRC will assume non-payment means it is being used. The VAT deferred must be paid by 31 March 2021.
Full details of the scheme may be found here.