The VAT payment deferral enables all UK VAT-registered businesses to choose to defer VAT payments due between 20 March and 30 June 2020 until 31 March 2021.
To ensure they're in place in time for payments due in July 2020 onwards, businesses mustn't forget 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. The Direct Debit mandates usually need to be set up three working days before a VAT return is filed.
Businesses must set up the mandate through their business tax account, as agents cannot set up direct debit mandates on behalf of clients.
Further guidance is awaited from HMRC on the arrangements required to pay the deferred VAT by 31 March 2021.