Earlier this year the government announced that businesses who have been adversely affected by coronavirus can defer their VAT payments.
The deferral applied from 20 March 2020 until June 2020 and all UK businesses were eligible to take advantage of the scheme.
If you did defer your VAT and still have payments to make, you can:
- Pay the deferred VAT in full on or before 31 March 2021. If you wish to do this and haven’t done so already, please ensure you’ve reinstated your VAT direct debit
- Opt into the new VAT deferral payment scheme when it launches in 2021
- Contact HMRC if you need more help to pay
The new scheme will enable businesses to repay their VAT by making up to 11 smaller, interest-free payments instead of paying the full amount by the end of March 2021. All instalments must be paid by the end of March 2022 however.
Please note that you can’t opt into the new VAT deferral payment scheme yet. The online opt-in process will be available in early 2021 and this is something you must do yourself. Unfortunately, we won’t be able to do this on your behalf but we can answer any questions you may have and advise you on how to make a claim.
Other VAT schemes which have been announced during coronavirus include the new VAT flat-rate scheme for the hospitality sector and the delay to reverse charge VAT for construction services.
Please head to the gov.uk website for more information or get in touch with PKB and we’ll be happy to help.
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