Carmarthen | Haverfordwest | Lampeter
01267 237534    info@lhp.co.uk
LHP
Chartered Accountants

Businesses need to reinstate VAT direct debits

 

The deferral of VAT payments due to coronavirus comes to an end on 30 June and businesses need to take action to reinstate their direct debit mandates..

 

The VAT payment deferral means that all UK VAT-registered businesses have the option to defer VAT payments due between 20 March and 30 June 2020 until 31 March 2021.

 

However, ICAEW is reminding businesses that they need to take steps to reinstate their direct debit mandates so that they are in place in time for payments due in July 2020 onwards. Any outstanding returns should be filed, and three working days should be allowed to elapse before reinstating the direct debit mandate.

 

HMRC will issue guidance on the end of the VAT deferral period very soon but, to be effective, direct debit mandates usually need to be set up three working days before a VAT return is filed.

 

We cannot set up direct debit mandates on behalf of our clients; the business needs to set up the mandate through their business tax account.

 

HMRC has confirmed that it will not collect the outstanding balance of deferred VAT when the direct debit mandate is reinstated. HMRC has made the necessary systems change to avoid this happening for businesses in MTD for VAT.

 

 

See: https://www.icaew.com/insights/tax-news/2020/jun-2020/businesses-need-to-reinstate-vat-direct-debits?mi_u=3abea46f08cc6556d0f22dd0af9acb7ea9117c91&utm_campaign=Members%20-%20ICAEW&utm_medium=email&utm_source=1440536_Faculties_TAXnewswire_16Jun20_PO&dm_i=47WY%2CUVIW%2CJWEGN%2C3RW7L%2C1

Testimonials

When in business, one needs a great accountant. Eirian of LHP has offered just that. The daunting experience of setting up in business was made significantly easier through LHP’s support and guidance. The company’s strengths are their understanding of the farming industry, their attention to detail and their personal and professional service. I have no hesitation in recommending LHP accountants as I consider Eirian to be a valued member of the team.
Samuel Carey, Milkwell Ltd.
Cloud & App Experts
l1
l2
l3
l4
l5
l7
l6