The VAT due for the quarter to 31 March 2020 is payable by 7 May 2020, and where a direct debit is set up the amount due would normally be collected by 10 May. However, as 8 to 10 May is a long bank holiday weekend, the DD will be collected on 7 May 2020.
Where your client wants to take advantage of the deferral of VAT payments between 20 March and 30 June remind them to cancel their DD for paying VAT. This can be done the online VAT account or by contacting their bank. Agents can’t change banking details on behalf of a client.
HMRC has updated its guidance concerning the VAT deferral, confirming that annual account advance payments due between 20 March and 30 June can also be deferred, but not VAT MOSS payments or import VAT. Any deferred VAT will have to be paid on or before 31 March 2021.
Many businesses may be due a VAT repayment in the current VAT period as they have little or no sales, but still have bills that include VAT. To obtain these repayments quickly the business can change to monthly VAT returns by altering their VAT periods in their online VAT account.
If you have taken on a new client and you want authorisation to act for VAT, the online authorisation form asks for the box 5 figure from the “last VAT return”. However, since the VAT returns submitted under MTD enter HMRC via an API, the authorisation system can’t see them. To answer the question correctly you need to supply the box 5 figure from the last VAT submitted before MTD.