We recently posted about the VAT payment deferral initiative which applies to all VAT registered businesses. It currently covers the period 20 March 2020 to 30 June 2020, meaning that any VAT payment due for VAT returns covering a period ending 28 February 2020, 31 March 2020 and 30 April 2020 can be deferred, if required.

Crucially this means that if you ordinarily pay your VAT by direct debit, this will need to be cancelled with your bank. This will need be done in sufficient time to stop HMRC trying to collect any payment due on the usual payment date once your VAT return has been submitted. We would therefore advise that you do this as soon as possible.

However this also means that once the payment date has passed it will be important for you to reinstate your standing order with HMRC in order that future VAT return payments can be collected by the due date. Please see the link included for ways to pay your VAT https://www.gov.uk/pay-vat