One of the many government schemes which were made available to businesses due to COVID-19 was the deferral of VAT payments.
If you deferred any VAT payments which were due between 20 March 2020 and 30 June 2020 you can:
- Pay the deferred VAT in full now
- Join the VAT deferral new payment scheme
- Contact HMRC by 30 June 2021 if you need extra help to pay
VAT deferral new payment scheme
The VAT deferral new payment scheme is open for all businesses who deferred paying VAT due between 20 March and 30 June 2020 and were unable to pay in full by 31 March 2021.
The scheme allows businesses to:
- Pay their deferred VAT in equal instalments, interest free
- Choose the number of instalments, from two to 11 (depending on when you join)
Please note that applications for the VAT deferral new payment scheme will close on 21 June 2021.
You may be charged a 5% penalty and/or interest if you don’t sign up by the deadline of 21 June, if you don’t pay in full by 30 June, or get in touch with HMRC to make an alternative arrangement to pay by 30 June 2021.
For more information about the VAT deferral new payment scheme, please head to the gov.uk website.
Alternatively, if you would like help with anything related to VAT or the coronavirus government schemes available to businesses, please don’t hesitate to get in touch with PKB.
To read news and blogs from Rebecca Austin, click here >>