All UK businesses registered for VAT have the option to defer VAT payments due between 20 March and 30 June 2020.
Businesses, therefore, have until 31 March 2021 to pay any deferred VAT as a result of this announcement.
Firms do not need to inform HMRC if they wish to defer payments. They can opt-in into the deferral scheme simply by not making VAT payments due in the period. If the businesses usually pay by Direct Debit, they should cancel it with their bank well in advance so that HMRC does not attempt to automatically collect the amount due on receipt of their VAT returns.
On the other instance, HMRC will continue to make repayments to businesses when money is due to the latter. Until further notice, businesses must continue to submit VAT returns as normal.