Deferral of VAT payment...

[Powerfully Built PSC Director - Outside IR35]

Anyone taking this up? My accountant just submitted my Ltd Co VAT return for 01 Jan 20 to 31 Mar 20. I just cancelled the DD as per HMRC advice.

I don't need the bunse, but I'm just keeping hold of it in the event that .gov.uk write off payment. The amount is just over 8k for me.

Here's the detail for those not quite in the know:

If you choose to defer paying your VAT
If you choose to defer your VAT payment as a result of coronavirus (COVID-19), you must pay the VAT due on or before 31 March 2021.

You do not need to tell HMRC that you are deferring your VAT payment.
Payments made by Direct Debit
If you normally pay by Direct Debit you should contact your bank to cancel your Direct Debit as soon as you can, or you can cancel online if you’re registered for online banking.

https://www.gov.uk/guidance/deferral-of-vat-paymen...

[Ham_and_Jam]

Powerfully Built PSC Director - Outside IR35 said:

Anyone taking this up? My accountant just submitted my Ltd Co VAT return for 01 Jan 20 to 31 Mar 20. I just cancelled the DD as per HMRC advice.

I don't need the bunse, but I'm just keeping hold of it in the event that .gov.uk write off payment. The amount is just over 8k for me.

Here's the detail for those not quite in the know:

If you choose to defer paying your VAT
If you choose to defer your VAT payment as a result of coronavirus (COVID-19), you must pay the VAT due on or before 31 March 2021.

You do not need to tell HMRC that you are deferring your VAT payment.
Payments made by Direct Debit
If you normally pay by Direct Debit you should contact your bank to cancel your Direct Debit as soon as you can, or you can cancel online if you’re registered for online banking.

https://www.gov.uk/guidance/deferral-of-vat-paymen...

Exactly what I’ve done / doing.

Already filed Q4, was going to pay, because I’m a bit old fashioned like that. However, I slept on it and decided just to cancel the DD and put the money into our business reserve account. So money allocated and not going to be used.

I just don’t want to be in a situation next year, when the government decide those that are having difficulties can write all or a portion of the payments due.

Believe me, there’s going to be a whole load of companies unable to pay 3-4 quarters of VAT payments and 2-3 self assessment payments all at once. It will be quite difficult for a lot of people.

[Stay in Bed Instead]

It's not your money. You have collected it from others.

The Government is not going to waive payment.

[Getragdogleg]

That's my take on it, it's not mine so I'll pay now rather than have to pay later.

Business rates on the other hand...

[Stay in Bed Instead]

Getragdogleg said:

That's my take on it, it's not mine so I'll pay now rather than have to pay later.

Business rates on the other hand...

Is there any payment relaxation on that though if you are still liable?

[deggles]

I wouldn't rule anything out at this point. Better in your bank account than HM Treasury's, shirley?

[Stay in Bed Instead]

deggles said:

I wouldn't rule anything out at this point. Better in your bank account than HM Treasury's, shirley?

The government will have to borrow it instead.

[Ham_and_Jam]

Stay in Bed Instead said:

It's not your money. You have collected it from others.

The Government is not going to waive payment.

You’re right, but it’s no different to a mortgage or PCP holiday enjoyed by others.

I’ve never missed a payment in 15 years,
And when they asked for it, I will happily pay it

[RFC1]

There is not a chance in merry hell that VAT will not be collected in due course. It simply is not "our" money to keep.
I for one will be submitting Quarter 1 next week as per usual . And not cancelling the direct debit.
Last thing my company needs right now is VAT owing added to much reduced income.......Might live to regret it but i doubt it.

[loafer123]

I have a fairly big VAT bill due this quarter, and will be paying as normal.

At the end of the day, it isn’t my money, I wouldn’t spend it because I know it has to be paid, and the country needs it.

[RFC1]

Sambucket said:

I don't understand why you would willingly give up no-strings free cashflow? What's the downside.

I have pretty much zero output VAT (service biz) and the VAT covers wages pretty neatly. So that's one less thing to think about.

Point taken.

[Powerfully Built PSC Director - Outside IR35]

loafer123 said:

and the country needs it.

You got that right.

[loafer123]

Powerfully Built PSC Director - Outside IR35 said:

loafer123 said:

and the country needs it.

You got that right.

I honestly can’t be bothered to even try to point out why this is a fallacious argument.

It just isn’t worth my time, or the time of the poor people who would have to wade through your posts.

Have a lovely evening.

[Terminator X]

Put the VAT to one side imho (savings account?) and just pay it later. It may get vaped as you say so why pay unecessarily.

TX.

[RFC1]

Terminator X said:

Put the VAT to one side imho (savings account?) and just pay it later. It may get vaped as you say so why pay unecessarily.

TX.

Do you genuinely believe that vat due will be "vaped" ???

[Powerfully Built PSC Director - Outside IR35]

RFC1 said:

Do you genuinely believe that vat due will be "vaped" ???

Would you have genuinely believed, 60 days ago, that the govt would be paying 80% of folks salaries up to £2.5k?

You talk like we’re going to spend the VAT money? All we’re doing is taking a punt on whether or not the govt. will call in the cash. And for others, it may be the difference between paying people rather than laying off people.

[Ham_and_Jam]

There are a lot of hypocrites. People will gladly take grants, furlough money, universal credit etc etc, all derived from public money. However dare to defer a VAT payment, the operative word ‘defer’, and jeez your the devil!!!

If the government has declared a VAT payment deferral, to help the cash flow of my business, because my god is going to be tough when we go back. I’m taking it.

If business is good, I’ll pay it sooner rather than later, but who knows. Business may may never be the same again.

We going to talk about Self Assessment payment holidays in the same way?

Edited by Ham_and_Jam on Thursday 23 April 21:22

[anonymous-user]

I won't be paying over the VAT due either. It will sit in the companies' bank accounts until payment becomes due.

I would say that there is a very, very small chance that the payment will be written off and a slightly higher chance that it will be deferred / collected in long and drawn out instalments sometime after Jan 2021.

And, as others have already illustrated with examples, these are strange times and anything could happen between now and whenever. I'd rather have the money on hand than pay it over for now

[RFC1]

Ham_and_Jam said:

There are a lot of hypocrites. People will gladly take grants, furlough money, universal credit etc etc, all derived from public money. However dare to defer a VAT payment, the operative word ‘defer’, and jeez your the devil!!!

If the government has declared a VAT payment deferral, to help the cash flow of my business, because my god is going to be tough when we go back. I’m taking it.

If business is good, I’ll pay it sooner rather than later, but who knows. Business may may never be the same again.

We going to talk about Self Assessment payment holidays in the same way?

Edited by Ham_and_Jam on Thursday 23 April 21:22

Get back to me when you end up having your outstanding vat payments quashed and i will be mightily annoyed.

[Terminator X]

RFC1 said:

Terminator X said:

Put the VAT to one side imho (savings account?) and just pay it later. It may get vaped as you say so why pay unecessarily.

TX.

Do you genuinely believe that vat due will be "vaped" ???

May I said. Who knows, the world is changing very quickly at the moment.

TX.