Can I claim a VAT refund for VAT paid during the Coronavirus pandemic?
If you missed the opportunity to defer your VAT payments between 20 March 2020 and 30 June 2020, you may be able to claim a refund ….
Back in March, one of the Government’s responses to support businesses during the Coronavirus pandemic was to defer VAT payments due between 20 March 2020 and 30 June 2020, to 31 March 2021.
If you failed to cancel your Direct Debit on time, HMRC have confirmed that the quickest way to obtain a VAT refund is to submit a Direct Debit Indemnity Claim directly to your bank (you must ensure that you state you want to claim a refund under the Direct Debit Indemnity Scheme (DDI). Alternatively, the repayment can be requested directly from HMRC but this will take longer; do check your bank account details are up to date, by using HMRCs online services. Payable orders will not be issued.
HMRC have confirmed that there is no time limit in claiming this VAT repayment but don’t forget, you’ll still need to pay it by 31 March 2021.
There is no further VAT deferment for payments due after 1 July 2020 so please don’t forget to reinstate your Direct Debits so that your next VAT payment is paid on time. This means that both monthly and quarterly VAT Returns are due as follows:
- Monthly VAT Returns to 31 May 2020 are due, with payment, on 7 July 2020; and
- Quarterly VAT Returns from 1 March 2020 to 31 May 2020 are due, with payment, on 7 July 2020.
Call Alex or Chloe in our Business Services Team if you require help with VAT matters, managing your costs and cashflow on 01223 810100