Delaying VAT payments Delaying VAT payments
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    Default Delaying VAT payments

    Hi, has anyone delayed their VAT quarterly payment? Just wondering if any issues with doing this? Thanks

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    Most here seem to have decided against delaying.

    However, the guidance says you don't need to inform HMRC of your intention to delay making a payment but you MUST submit your VAT return as normal, on time.

    The arrangments for when you make the payment aren't yet available so do make sure you have found the funds, I'd say, by the end of the year. That's just a guess on my part pending further information.

    Deferral of VAT payments due to coronavirus (COVID-19) - GOV.UK

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    Quote Originally Posted by Cookielove View Post
    Hi, has anyone delayed their VAT quarterly payment? Just wondering if any issues with doing this? Thanks
    Have you actually been paid?

    If so, just send HRMC a letter saying "I've got your money, but I think I'm going to keep it."

    (Filling in the CUK Daily Sarcasm Quota as NLUK seems to be having a lie in this morning.. )
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    IMO......

    But of all things not to mess about with VAT is not one of them. Unless you really really need the money then don't do it. Pay it and carry on. I'd personally rather defer my mortgage than play around with VAT.

    (Filling in the CUK Daily Sarcasm Quota as NLUK seems to be having a lie in this morning.. )
    Lol I was typing as you posted it but nicely done

    PS... OP this could have gone in the accounting section or even better the Coronavirus thread. I'm sure mod will be alone sometime in the next 6 months to move it.
    Last edited by northernladuk; 23rd April 2020 at 08:45.
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    For my part, I will be paying my last bill for business to end March.

    As above, if you've been paid, should really be no excuse to not pay the VAT bill.

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    I don't understand the logic here.

    Real businesses will defer anything and everything they can that doesn't come with a penalty. That's just part of maximizing cashflow.

    You want to run a real business or do you want to pay your taxes early like an employee does?

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    Quote Originally Posted by jayn200 View Post
    I don't understand the logic here.

    Real businesses will defer anything and everything they can that doesn't come with a penalty. That's just part of maximizing cashflow.

    You want to run a real business or do you want to pay your taxes early like an employee does?
    Or simply apply some common sense and play by the rules: Deferral of VAT payments due to coronavirus (COVID-19) - GOV.UK

    I've been contracting long enough to have been through two tax inspections (HMRC visits) and two VAT inspections (was Customs and Excise visits back then.) Believe me, you don't want to get on the wrong side of them for no reason.
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    Quote Originally Posted by jayn200 View Post
    I don't understand the logic here.

    Real businesses will defer anything and everything they can that doesn't come with a penalty. That's just part of maximizing cashflow.

    You want to run a real business or do you want to pay your taxes early like an employee does?
    It's about risk. The government are going to want that VAT at some point - defer what you like, but spend the money at your peril. The contract business shouldn't be as cashflow dependent as others - you have no suppliers, you have no staff, you have few if any fixed overheads.

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    Quote Originally Posted by vwdan View Post
    It's about risk. The government are going to want that VAT at some point - defer what you like, but spend the money at your peril. The contract business shouldn't be as cashflow dependent as others - you have no suppliers, you have no staff, you have few if any fixed overheads.
    Would you advise paying other creditors a year before payment is due if there is no financial incentive to do so?

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    Quote Originally Posted by jayn200 View Post
    Would you advise paying other creditors a year before payment is due if there is no financial incentive to do so?
    No, because not paying most creditors is mostly one of a purely civil matter. If I run out of money before I can pay them, it's mostly a case of tough tulip and there's very little they can do.

    The same is not true for VAT, and I'm curious as to why you'd conflate them both.

    That said, the point is again, most contractors shouldn't have huge amounts in the way of creditors. I'm not a particularly "traditional" contractor, and apart from my credit card pretty much everything is a monthly payment of fairly low value. Some might, technically, be yearly payments but meh - the point is they all pale in comparison to my VAT and Corp Tax bills.
    Last edited by vwdan; 23rd April 2020 at 10:25.

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