These options include paying the deferred VAT fully, on or before the end of March 2021. Interest and penalties may be charged if you don't pay in full, opt into the latest payment scheme by the 21st June 2021 or agree extra time to pay with HMRC by the end of June 2021.
"Any deferred VAT must be paid in full by the 31st March 2021 if no instalment plan is in place!"
The VAT Deferral New Payment Scheme opens for registrations from the 23rd February 2021 until the 21st June 2021. Anyone with VAT Annual Accounting or VAT Payment on Account will be invited to join by HMRC directly from March. This new scheme allows you to pay deferred VAT in up to 11 instalments, interest-free (depending on when you join it).
To be able to register for the online service, businesses must:
Join the scheme yourself, not via an agent
Have deferred VAT you still need to pay
Be up to date with your VAT returns
Join on or before the 21st June 2021
Pay your first instalment when you join the scheme
Pay instalments by direct debit
Remember to create your own Government Gateway account if you don't already have one.
If you want to join the VAT Deferral New Payment Scheme, but are unable to use the online service via the Government Gateway, you can contact HMRC's COVID-19 helpline on 0800 024 1222 once the scheme begins.
You may also be contacted by HMRC should a VAT compliance check find that extra payments are due.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about VAT Deferral, call me on 01908 774320 and let's see how we can help. Don't forget to stay updated with our daily social media posts on our Facebook page.
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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