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End of VAT Deferral period hits May VAT Returns


The end of June 2020 marks the end of the UK Covid19 VAT Deferral Period and therefore it is worth spending 5 minutes considering whether this change leaves you exposed to inadvertently triggering a VAT compliance failure.


VAT payments due between 20 March 2020 and 30 June 2020 were able to deferred to 31 March 2021, as part of the Covid19 support measures put in place by the Government.


If you have a VAT period ending 31 May 2020, then you will need to pay the VAT by 7 July 2020.


This 7 July deadline applies irrespective of whether you normally aim to pay your VAT return during the month following the VAT period. It is the official due date for electronic VAT submissions for both VAT Group and individual business VAT returns.


The exception to this would be if you are on a special VAT instalment scheme, such as "annual accounting" or the "payment on account" scheme, in which case payments due at the June month end are still covered within the deferral period.


If your VAT Returns were paid by Direct Debit prior to Covid19, then you need to consider whether you:

  • reinstate the the Direct Debit by 2 July to allow time for the direct debit to be processed or

  • pay by BACS this period, ensuring that the payment reaches HMRC by the 7th July deadline

Think tax for 5 minutes.

Reach out to your accountant, if they have not already reached out to you.

Save yourself one more stressful event in this crazy Covid world.



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