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

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LHP have shown that accounting is about more than just end of year accounts, and just as much about helping me manage my accounting needs throughout the year getting good solid tax and vat advice along the way.

They have also helped by listening when I have query and sign posting me to other services that have given me guidance on other business issues and by opening up other the business networks in financing and legal advice within an associate network throughout west Wales

Dai Nicholas

Nicholas MKTG - Experienced business consultant and manager.
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