As the COVID-19 pandemic started to take hold in Spring 2020, HM Government announced that VAT payments on returns due between 20/03/20 and 30/06/20, could be automatically deferred until 31/03/2021.
For those businesses that utilised the deferral scheme, and still have VAT payments to make, there are three options available to them:
Pay the deferred VAT in full by 31/03/2021
Opt in to the new payment shame which is due to be launched imminently
Contact HMRC if you need more help to pay
New Payment Scheme - What is it?
Instead of paying the deferred VAT in full by the end of March 2021, businesses will be able to settle the balance across equal monthly instalments up to the end of March 2022, interest free.
The new payment scheme will allow businesses to:
Pay the deferred VAT across monthly instalments without incurring any interest
Choose an instalment plan that works for them, ranging from 2 - 11 equal monthly payments
To be eligible for the scheme you must:
Still have deferred VAT to pay
Be up to date with your VAT returns
Opt into the scheme before the end of March 2021
Pay the first instalment at the point you opt into the scheme
Opting into the new payment scheme does not affect any existing 'time to pay' arrangements your business might have with HMRC for other debts and outstanding taxes.
This additional support would really help - What should I do next?
It's important to note that you must opt in to the new payment scheme yourself - Your company accountant or business advisor will not be able to do this on your behalf.
The online opt in process was due to be launched early in 2021 but remains unavailable - It's therefore imperative to keep checking the dedicated Gov webpage for further updates.
You can access more information about the new payment scheme by clicking here - Should you require any further assistance, please don't hesitate to get in touch with the team at KeySME.
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