HMRC has warned that penalties may be charged for non-payment of VAT in regards to the deferred VAT scheme.
Businesses were able to defer VAT that was due between March 20, 2020 and June 30, 2020 and were unable to pay in full by March 31, 2021.
Under the deferral scheme businesses were given the option to spread payments over several months.
Businesses that fail to take any action to pay the deferred VAT in full, or fail to make an arrangement to pay by the deadline of June 30, 2021 could receive a penalty.
Those who took up the scheme were warned that a 5% penalty and interest would be charged.
Once a penalty has been received there is a 30 day deadline to make your payment.
“HMRC have made it quite clear that negotiations can be made over payments, especially if your business has been impacted by the pandemic,” said John Moorhouse, director of Ellis & Co Chartered Accountants and Business Advisers.
“If you are struggling to make these payments please contact HMRC immediately.”
Ellis & Co Chartered Accountants and Business Advisers, Chester & Wrexham - 01244 343504, firstname.lastname@example.org