Support for businesses through deferring VAT payments

The Government will support businesses by deferring Valued Added Tax (VAT) payments for 3 months.
If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to defer the payment until a later date or pay the VAT due as normal.
For more information on VAT deferment please visit the Government Website at https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

Commercial Property VAT Tax Solutions

A commercial property VAT loan allows you to raise short term finance to cover the VAT element due on the purchase of your own or your client’s commercial property

VAT on commercial property is chargeable when a property has been elected for VAT and the owner has registered an interest in that property and has registered for VAT themselves.  This is known as an “opted in” commercial property and the vendor is able to issue a VAT qualifying invoice for the purchase of the property to the purchaser.

You can reclaim the VAT but first it must be paid.  The reclaim takes place if HMRC approves the transaction once the reclaim is submitted following the purchase.  Eligible reclaims typically take between 45 to 120 days from the date of payment (purchase) and recovery.  This can often affect cash flow and potential opportunity, so a VAT bridging loan can be a helpful solution. A commercial property VAT loan enables you to focus on the next transaction rather than allocating cash to HMRC.

For more information on VAT Commercial Property funding  Contact Us today.