The VAT deferral new payment scheme is open for all businesses that deferred VAT due between March 20, 2020 and June 30, 2020 and were unable to pay in full by March 31, 2021.
Businesses can spread these payments over several months – businesses that join by June 21, 2021 will still be able to benefit from up to eight monthly instalments.
Businesses can join the easy-to-use scheme without needing to call HMRC.
Before joining, businesses must:
- have their VAT registration number
- create their own Government Gateway account (if they do not already have one)
- submit any outstanding VAT returns from the last 4 years – otherwise they will not be able to join the scheme
- correct errors on their VAT returns as soon as possible
- make sure they know how much is owed, including the amount originally deferred and how much they may have already paid
Businesses may be charged a 5% penalty and interest if they do not either pay in full,
Sign up to the scheme online by June 21, 2021, or get in touch with HMRC to make an arrangement to pay by June 30, 2021.
Ellis & Co Chartered Accountants and Business Advisers, Chester & Wrexham - 01244 343504, email@example.com