VAT: Coronavirus

(asked on 13th October 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect on the expected number of returns to the Exchequer of the level of deferred VAT payments under the Deferral Scheme for VAT.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 20th October 2020

As part of the Government’s support for businesses during COVID-19, businesses were given the option to defer their VAT payments between 20 March and 30 June in order to manage their cash flow through the initial stages of the pandemic. Approximately 500,000 businesses deferred £30 billion in VAT. Approximately £16 billion of VAT was received into the Exchequer covering the deferral period, as some businesses continued to pay VAT as normal.

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