Businesses risk penalty if they forget to reinstate VAT direct debit
The Association of Taxation Technicians (ATT) is reminding businesses which have cancelled their direct debit in order to defer VAT payments, to set up a new one soon. Failure to get a direct debit set up in time could result in the business paying their VAT bill late - and ultimately result in a penalty charge.
As part of the Government’s package of COVID-19 support, all UK VAT registered businesses have been able to defer VAT payments due between 20 March and 30 June 2020 until 31 March 2021 at the latest.
Those businesses that usually pay their VAT by direct debits were required to cancel their direct debit mandates in order to benefit from this deferral.
The deferral of VAT payments under the government’s COVID-19 support package ends on 30 June 2020. Businesses who have taken advantage of this must remember to reinstate their VAT direct debits in time for their first post 30 June VAT payment date.
Posted on Jun 18, 2020.