The automatic deferment of VAT payments is coming to an end on 30 June, so clients who owe VAT for the quarter or month ending on 31 May 2020, will have to pay as usual by 7 July.
Where the business cancelled its direct debit mandate to ensure that VAT due in the period from 20 March to 30 June was not collected, it will have to reinstate that direct debit to ensure the VAT as reported on returns from May onwards is collected automatically again. If the direct debit is not reinstated in time, the business will need remember to make an electronic transfer of the VAT due.
If the business cannot pay its VAT bill on time, it should apply to HMRC for extra time to pay. The best way to do this is to call the HMRC payment support service on 0300 200 3835 before the tax becomes overdue. You can help to negotiate a Time to Pay arrangement with HMRC on behalf of your client.
HMRC is also starting to chase up VAT registered businesses to sign-up for MTD if they have not already done so.