All VAT registered businesses must charge VAT on their goods or services and may reclaim any VAT they’ve paid on business-related goods or services.
A VAT-registered business must report to HMRC the amount of VAT charged and the amount of VAT paid. This is done through the VAT return, which is usually due every three months.
On 20 March 2020 the Chancellor announced a further measure to support people and businesses through the period of disruption caused by COVID-19. Firms and their clients will note that HMRC will defer VAT payments for three months to the 30th June 2020.
All UK businesses are eligible. This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.
You should not that this is only a deferral. Businesses will be expected to pay the VAT for this period at a future date. We expect that this may still be challenging for some organisations.
For further information about the laws affecting your business or company why not give one of Alexander JLO’s expert commercial property team a call and see what we can do for you?