December 16, 2020: Wheelers Words

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December 16, 2020 | VAT Deferral New Payment Scheme

If your business deferred VAT due from 20‌‌‌ ‌March to 30‌‌‌ ‌June 2020 and still has payments to make, you now have the option to pay in full on or before 31 March 2021 or opt in to the VAT deferral new payment scheme when it launches in 2021.

You do not need to contact HMRC if you pay by 31 March 2021.

However, if you want to opt in to the new payment scheme this must be done online by you. As agents we cannot do this for you.

You can pay the deferred VAT in instalments without adding interest over 2 to 11 equal monthly payments and these need to be paid by the end of March 2022.

To use this scheme you must be up to date with your VAT returns, opt in before the end of March 2021, pay the first instalment before the end of March 2021 and pay the deferred VAT by Direct Debit.

If you opt into the scheme, you can still have a time to pay arrangement for other HMRC debts and outstanding tax.

Businesses that can pay their deferred VAT should still do so by 31‌‌‌ ‌March 2021.

Further information can be found by following the link

https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

If you require any further details please do not hesitate to contact us.