VAT deferral

VAT deferral

08/06/2020

 

 

 

It has been reported that alone, the deferral of VAT is costing the HMRC approximately £14bn a month in revenue.

As part of the many schemes to help individuals and businesses with cash flow, one of these was the option to defer your VAT payments up to June 2020. To do this users were advised to cancel their DD.

If you are one of those who did or could not cancel their DD in time and maybe now want to take advantage of this scheme then HMRC has announced that you can claim a refund for the VAT payment you made.

To do this you can either:

1) Submit a DD Indemnity Claim with your bank, stating that you want to claim a refund under the Direct Debit Indemnity Scheme (DDI). HMRC confirms that there is no time limit in making this request.

2) Alternatively you can request for a repayment directly from HMRC rather than the bank, however this is a slower process (up to 21 days).

 

If you would like some more information, do not hesitate to drop us an email at [email protected]