Delaying VAT payments

[ladymuck]

Deferring it does mean another quarter sat in the Aldermore pot for income. So there is that, at least.

The financially savvy thing, therefore, is to defer and pay the lump sum on the last day.

Yes, if you're not using it (as some seem to be suggesting) to pay the operating costs of your company.

[jayn200]

VAT should never be part of your reserves? It comes in and goes straight back out again. Why would you ever consider doing anything else with it? All your expenses, whatever they may be, should come out of the net portion of your invoice. To do anything else is a dangerous and slippery slope.

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

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

Temporary changes to the VAT payments due between 20 March 2020 and 30 June 2020 to help businesses manage their cash flow.

They have it literally in the title of the gov UK advice that deferral of VAT is meant for cash flow purposes. The government expects businesses to potentially need to spend this VAT money in the interim which means the government is accepting the risk that a % of businesses will default on this in a years time. Not saying that will be my business I am in a good position + am still in contract.

I just feel like I am really disconnected with everyone here so I will just drop out of this thread.

I will say though anyone reading this thread who feels like their business is struggling or might be struggling soon, do not feel ashamed or get bullied by people here into not taking help that the government is offering you. Whether that is vat deferrals, furlough scheme, etc. It's all there for a reason. To keep businesses afloat and if the choice is insolvency or using one of these programs well then you can make your own choice but definitely don't let people bully you into feeling guilty for using one of these programs.

[ladymuck]

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



They have it literally in the title of the gov UK advice that deferral of VAT is meant for cash flow purposes. The government expects businesses to potentially need to spend this VAT money in the interim which means the government is accepting the risk that a % of businesses will default on this in a years time. Not saying that will be my business I am in a good position + am still in contract.

I just feel like I am really disconnected with everyone here so I will just drop out of this thread.

I will say though anyone reading this thread who feels like their business is struggling or might be struggling soon, do not feel ashamed or get bullied by people here into not taking help that the government is offering you. Whether that is vat deferrals, furlough scheme, etc. It's all there for a reason. To keep businesses afloat and if the choice is insolvency or using one of these programs well then you can make your own choice but definitely don't let people bully you into feeling guilty for using one of these programs.

Don't take it personally. VAT is an odd tax to have eased up on demanding payment for, especially as it's only for one quarter and the repayment mechanism isn't clear. It doesn't feel like its been well thought out.

You are right - each business should assess their own position and decide for themselves which schemes to use that will help them the most.

[PerfectStorm]

They could do everyone a solid favour and knock out corporation tax for a year

(if anything of course, it'll need increasing to pay for all these schemes the government is forking out for)

Don't be shy about claiming what's on offer - contractors are sure as hell going to be paying for it

[David71]

They could do everyone a solid favour and knock out corporation tax for a year

(if anything of course, it'll need increasing to pay for all these schemes the government is forking out for)

Don't be shy about claiming what's on offer - contractors are sure as hell going to be paying for it

Damn right.... I've just had my (10k) Welsh Government micro-business grant approved