Deferring VAT payment.

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Amongst all the other stuff going on I've been checking with my accountant for his thoughts on the VAT deferment option.

On the one hand, pay it and have done. On the other no one knows what's coming or how long before things are straight.

It's only £10k this quarter, but hanging onto it is an interest free loan to use as a safety net. I then have until March 31st 2021 to pay that off, which can be done all as one lump at some point up to that date. Or manual/over payments at any time in between now and then.

Basically the conclusion he came to is hang on to the money and see what happens, which is what I'll do. He also said that if things get really bad financially HMRC (told by the chancellor) may write it off altogether, but if you've paid it they would be extremely unlikely to give it back.

I mention this because others may be wondering what's best.
 
I usually get a rebate, so I’m doing mine. Would probably pay it if it was the other way. Over and done with then.
 
Wezly said:
You still have to file it as normal and on time, it's just you can defer the monies owing.
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Yeah, they've done my return so it was just a question of hand it over or not. I was thinking along the same lines as @TonyM but changed my mind. I have nothing to lose by hanging onto the money as it's completely free for 11 months, but it's a safety net just in case. If things go well and it's all over quite quickly the money will still be there and I can hand it over then.

Plus, if things get weird I could always stick the lot on black. :LOL:
 
imago said:
Amongst all the other stuff going on I've been checking with my accountant for his thoughts on the VAT deferment option.

On the one hand, pay it and have done. On the other no one knows what's coming or how long before things are straight.

It's only £10k this quarter, but hanging onto it is an interest free loan to use as a safety net. I then have until March 31st 2021 to pay that off, which can be done all as one lump at some point up to that date. Or manual/over payments at any time in between now and then.

Basically the conclusion he came to is hang on to the money and see what happens, which is what I'll do. He also said that if things get really bad financially HMRC (told by the chancellor) may write it off altogether, but if you've paid it they would be extremely unlikely to give it back.

I mention this because others may be wondering what's best.
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As a small gamble you could buy physical gold with it which would stop you spending it and it has a chance of being worth more when you need to change it back to cash.
 
imago said:
Amongst all the other stuff going on I've been checking with my accountant for his thoughts on the VAT deferment option.

On the one hand, pay it and have done. On the other no one knows what's coming or how long before things are straight.

It's only £10k this quarter, but hanging onto it is an interest free loan to use as a safety net. I then have until March 31st 2021 to pay that off, which can be done all as one lump at some point up to that date. Or manual/over payments at any time in between now and then.

Basically the conclusion he came to is hang on to the money and see what happens, which is what I'll do. He also said that if things get really bad financially HMRC (told by the chancellor) may write it off altogether, but if you've paid it they would be extremely unlikely to give it back.

I mention this because others may be wondering what's best.
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Not turning it into a pissing contest, but mine will be 20k ish this quarter and I intend to pay it. I can’t be doing with debt, it’s always on the agenda in the back of your mind. When it is due be it March or when ever you will have your existing quarter plus the quarter you owe.
I’d say you are living up in the clouds if you think hmrc would ever wipe it off, we’re the 5th biggest economy in the world not some 3rd rate country off the Horn of Africa.If hmrc would get to that stage we would be bartering with cabbages in the street and to be honest my vat would be the least of my worries.
 
Stick it premium bonds 10/20 grand , u have a chance of winning the big prizes , it’s safe , and it takes 7 days to get it out so at least u won’t dip into it
 
superspread said:
Stick it premium bonds 10/20 grand , u have a chance of winning the big prizes , it’s safe , and it takes 7 days to get it out so at least u won’t dip into it
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I’d buy stocks in supermarkets and pharmaceutical companies if I was going that way with it.
 
superspread said:
Th
then ur gambling money u you can I’ll afford to lose ........... or maybe you can afford to lose that much
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Ha I guess that’s why I don’t gamble.
But You’d think that kind of share in a plc like that would go up 20-30% in a share isa, it’s tax free plus you’d get a dividend.
 
owls said:
Ha I guess that’s why I don’t gamble.
But You’d think that kind of share in a plc like that would go up 20-30% in a share isa, it’s tax free plus you’d get a dividend.
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If it went up at those rates we’d all invest
 
owls said:
Why not?
My wife has some in Tesco, they’ve gone up 8% this week alone. Supermarkets are recession proof, everyone’s got to eat. Don’t carry debt, own there own stores, not massive pension liabilities etc.
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Cos everyone is panic buying , if u can hold ur nerve while this is going on them for short term gain u might do ok , but long term they will even out
 
owls said:
I’d just pay hmrc as I said, there the most organised branch of the mafia about.
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if you are owed any money from developers i would have the payment deferred. several developers are missing their payments owing to poor sales.
i am surprised how little cash they run on. they just run on credit from builders merchants and sub contractors while they live the high life.
 
owls said:
I’d buy stocks in supermarkets and pharmaceutical companies if I was going that way with it.
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I've been looking at getting a micro digger. There's a low hours JCB for £6,600 + VAT so £7,920 with the VAT content at £1,320. If I bought that with the money I'd then be able to claim the £1,320 back from my next VAT payment.

Even better if I can re-work the staged payments due to keep the minimum in the next VAT quarter.

So use HMRC's money to fund a capital investment for the business and save money by doing it along with having the 'loan' to buy the machine interest free.
 
imago said:
I've been looking at getting a micro digger. There's a low hours JCB for £6,600 + VAT so £7,920 with the VAT content at £1,320. If I bought that with the money I'd then be able to claim the £1,320 back from my next VAT payment.

Even better if I can re-work the staged payments due to keep the minimum in the next VAT quarter.

So use HMRC's money to fund a capital investment for the business and save money by doing it along with having the 'loan' to buy the machine interest free.
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If you can plan it like that it’s savvy,
But most businesses wont be buying much plant/machinery the next few months you’d feel. I’ve a transit to replace as 1 of mine is 3 year old soon next month on a 17 plate, normally I wouldn’t hesitate but £21,000 plus the vat is a tough one when I’m sat at home and staff furloughed.
 
owls said:
If you can plan it like that it’s savvy,
But most businesses wont be buying much plant/machinery the next few months you’d feel. I’ve a transit to replace as 1 of mine is 3 year old soon next month on a 17 plate, normally I wouldn’t hesitate but £21,000 plus the vat is a tough one when I’m sat at home and staff furloughed.
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I feel like a peasant listening to u and @imago and @johniosaif
 
owls said:
If you can plan it like that it’s savvy,
But most businesses wont be buying much plant/machinery the next few months you’d feel. I’ve a transit to replace as 1 of mine is 3 year old soon next month on a 17 plate, normally I wouldn’t hesitate but £21,000 plus the vat is a tough one when I’m sat at home and staff furloughed.
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I'm not saying I definitely will, just looking at ways to make the most of the opportunity really.
 
superspread said:
I feel like a peasant listening to u and @imago and @johniosaif
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It’s a no brainer buying new vans it’s against my tax bill, so in effect costs me nothing.I’ll probably get 10k for my existing one plus vat, so I’ve onky 10k ish to find, spread out over 3 years duration, no mots, no warranty issues. Every business needs to reinvest capital, to bear fruit.
 
owls said:
Not turning it into a pissing con
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imago said:
I've been looking at getting a micro digger. There's a low hours JCB for £6,600 + VAT so £7,920 with the VAT content at £1,320. If I bought that with the money I'd then be able to claim the £1,320 back from my next VAT payment.

Even better if I can re-work the staged payments due to keep the minimum in the next VAT quarter.

So use HMRC's money to fund a capital investment for the business and save money by doing it along with having the 'loan' to buy the machine interest free.
[/QUOTE

I like it, some are losing their heads others using their heads.
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owls said:
It’s a no brainer buying new vans it’s against my tax bill, so in effect costs me nothing.I’ll probably get 10k for my existing one plus vat, so I’ve onky 10k ish to find, spread out over 3 years duration, no mots, no warranty issues. Every business needs to reinvest capital, to bear fruit.
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Buy 6 month old ones, let someone else take the initial hit. There’s plenty to choose from to.
 
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