Coronavirus Guidance for VAT-registered Businesses

Relief for making VAT payments to HMRC

All UK businesses are removed from the need to make a VAT payment to HMRC during the period from 20 March 2020 to 30 June 2020. The relief does not extend to VAT MOSS or import VAT. The relief is given automatically; i.e. the business does not need to make a claim.

Warning!

Where a direct debit is in place, the business will need to cancel the direct debit. This was confirmed by HMRC on 26 March.

All relevant VAT payments are deferred to 5 April 2021.

The business will be required to submit VAT returns as normal. VAT refunds and reclaims will be paid by the Government as normal.

The ICAEW have published answers from HMRC to frequently asked questions.

HMRC guidance

Making Tax Digital (MTD) deadline delayed

The professional bodies have reported that HMRC will delay the deadline for digital links for MTD for VAT from April 2020 to April 2021.
CIOT website

Option to tax deadline extended

HMRC have announced temporary changes to the time limit and rules for notifying an option to tax land and buildings: For decisions made between 15 February 2020 and 31 May 2020, the time limit for notifying is extended from 30 days to 90 days from the date the decision to opt was made.

HMRC guidance

Temporary zero-rating of PPE

The government has announced that a temporary VAT zero rate applies from 1 May to 31 July for the supply of Personal Protective Equipment (PPE) recommended for use in connection with COVID-19.

Government guidance

Content last updated 21 May 2020