For those businesses that opted into the government’s COVID-19 VAT payment deferral scheme, the new guidance that outlines the further extension of deferral has been released by HMRC.
The scheme which allowed for VAT payments falling due between 20 March 2020 and 30 June 2020 to be deferred until 31 March 2021 is to be extended for organisations that still have deferred VAT payments to make.
Opt In To The VAT Payment Deferral Scheme
By opting in to the new VAT payment deferral scheme when it launches in 2021, the option to pay in instalments instead of one bulk payment at the end of March 2021 will be possible.
There’s no interest to pay and the remaining VAT can be divided equally into 2 to 11 monthly payments. All instalments must be paid by the end of March 2022.
If you would rather pay deferred VAT by the original deadline, there’s no need to contact HMRC. Just pay in full by 31 March 2021.
For those still unable to pay deferred VAT, find out more about what to do if you can’t pay your tax bill on time.
How Can We Help
If you want to opt into the VAT deferral new payment scheme, you’ll need to do this yourself through the online opt-in process due to launch early 2021.
To qualify for the deferral you’ll need to do the following…
- Create your own Government Gateway account if you don’t already have one
- Submit any outstanding VAT returns from the last 4 years. You will not be able to join the scheme if you have not done so
- Correct errors on your VAT return as soon as possible. Corrections received after 31 December 2020 may not show in your deferred VAT balance
- Make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid
You should also:
- Pay what you can as soon as possible to allow us to show the correct deferred VAT balance
- Consider the number of equal instalments you’ll need, from 2 to 11 months
If you need assistance in making sure that you meet the qualifying criteria or deciding on what’s best for your circumstances we can help.
Contact us on 01704 211 434 or email@example.com