In order to aid self financing during the difficult times ahead due to the outbreak of coronavirus, The Chancellor has announced a VAT holiday from now until June. This will cover the following quarter ends :
- 29th February 2020 (due 7th April)
- 31st March 2020 (due 7th May)
- 30th April 2020 (due 7th June)
Businesses will have until 31st March 2020 in order to settle these VAT liabilities, by which time most hope that the economy will be well on the way to recovery.
It should be noted that those who receive VAT refunds will be paid by the government as normal.
Businesses will not need to do anything in order to take advantage of this holiday. This offer is automatic with no applications required. However, for any businesses out there who pay their VAT by direct debit, you must cancel this as otherwise the money will still be taken from your account.
Whilst a VAT payment only delays the payment for a year, rather than be any official handout from the government, it is also one of the simplest ways to give businesses a cash injection during these uncertain times.
