If you’ve deferred VAT payments due between 20 March and 30 June 2020 and still have amounts outstanding, you can do the following:
- pay the deferred VAT in full, on or before 31 March 2021
- join the VAT deferral new payment scheme- the online service is open between 23 February and 21 June 2021.
- contact HMRC if neither of the above apply.
Failure to either of the above may result in HMRC charging interest or a penalty.
You can pay your deferred VAT here.
The new scheme will be open from 23 February 2021 and is accessible via your HMRC Business Tax Account. The first instalment has to be paid when applying to use the scheme, with the following payments being made via direct debit (if you’re unable to pay via direct debit alternative payment methods will be available).
Businesses must join the scheme themselves by 21 June 2021. Unfortunately, agents can’t do this on behalf of clients. The HMRC software doesn’t allow for this. To be eligible to use the deferral scheme businesses must have a balance outstanding to HMRC but all VAT returns must be submitted and up to date.
For larger businesses who are in the VAT payment-on-account regime, the scheme will be available to use towards the end of March.
For more information please contact Michelle Dale on 0161 236 6936 or via email on m.dale@uhy-uk.com.
