Deferrals, PPE and more in this handy summary.
VAT deferral
VAT registered business can defer VAT payments that are due from 20 March 2020 to 30 June 2020.
The measure applies to payment deadlines for the following VAT quarters:
- 29 February 2020: normal payment deadline 7 April
- 31 March 2020: normal payment deadline 7 May
- 30 April 2020: normal payment deadline 7 June.
The deadline for settling the deferred VAT liabilities is now 31 March 2021.
The relief is automatic and does not need to be claimed; however, any direct debits set up to pay VAT must be cancelled by the taxpayer as HMRC cannot unilaterally cancel these.
When paying on account from 20 March 2020 to 30 June 2020, if any balancing payment falls outside of these dates, the amount that must settled is the balancing payment less any deferred payments. Deferring payments will not create a repayment.
Zero rating of personal protective equipment
From 1 May 2020 to 31 July, the VAT on sales and purchases of personal protective equipment has been reduced from 20% to 0%.
Cut of VAT rates on e-books
From 1 May 2020 VAT on e-books, online newspapers and journals has been cut from 20% to 0%. Previously scrapping VAT on online publications was planned to be brought in from December 2020.
Article from ACCA In Practice