During a Press Conference at 10 am on 23 March 2020, the Treasury Minister announced the following measures in relation to VAT payments.
To assist businesses struggling with cash flow we are offering the option to defer VAT payments due between now and the end of June 2020. No business will have to make a VAT payment to Customs and Excise during this period. There will be no interest charged on the amounts deferred under this provision however; the deferred payments must be paid by 31 March 2021. This measure is optional and is intended to give immediate support to businesses by keeping cash at their disposal during this extraordinary time of uncertainty.
Businesses are still required to file a VAT return for these periods but they do not need to contact Customs and Excise to inform them that they will be deferring the VAT.
These VAT deferral provisions are in-line with those announced by the UK Government on Friday.
The existing time-to-pay scheme is available for any payments due outside of this timeframe.
Further information can be found here.
