VAT deferral payments measures for UK businesses

‘There is still no guidance on the chancellor’s deferral of VAT payments and more important how this will work: said Alan Pearce, VAT partner at leading accounting and tax advisory firm Blick Rothenberg.

Alan Pearce said: ‘The chancellor has announced a deferral of VAT payments due between 20th March 2020 and 30th June 2020 until 31st March 2021.

‘However, we are awaiting HMRC’s detailed guidance on how this will work and more importantly who is eligible.

He added: ‘Currently, there is no certainty on whether non-UK established businesses can avail themselves of these VAT deferral arrangements.

‘HMRC’s Non-Established Taxable Persons Unit (NETPU) doesn’t know and are waiting for confirmation from the treasury before issuing guidance.

Pearce concluded that: ‘As with all the chancellor’s announcement, we have to wait to see the fine print before being certain how tax measures are to be implemented.

‘It is hoped that the VAT deferral arrangements will apply to all UK VAT registered businesses and not just VAT registered UK businesses as the latter would exclude any non-UK established entities.’


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