Pay VAT Deferred Due To COVID 19
Pay VAT Deferred Due To COVID 19- What you need to know.
A lot of businesses will have taken up the option given by the government to defer VAT that was due between 20th March 2020 and 30th June 2020.
The time to pay this deferred amount is almost arrived but you do have options to consider that may help your current cashflow and financial position.
A new VAT deferral payment scheme will open on the 23rd February offering businesses extra help to meet the liabilities that are coming due.
The new scheme is open from 23rd February to 21st June and lets you:
- Pay your deferred VAT in equal instalments interest free
- Choose the number of instalments from 2-11.
Pay VAT Deferred Due To COVID 19-How Do I Apply?
- You must join the scheme yourself we as your agent cannot do this for you
- Obviously you have to have a liability that is due for the above deferred period
- Be up to date with your current VAT returns
- Join the scheme by 21 June 2021
- Pay the first instalment when you join
- Pay your instalments by preferably direct debit
How Long Can I Pay Over?
The date you join the scheme dictates how long the payments can be over:
|JOIN DATE||NUMBER OF INSTALMENTS|
|19 March 2021||11|
|21 April 2021||10|
|19 May 2021||9|
|21 June 2021||8|
The sooner you join the more flexibility you have.
If you join this scheme it does not stop you having other time to pay arrangements for other HMRC debts
How Do I Join The Scheme?
Ideally you should do this online through your Government Gateway account.
- Create or log into your gateway
- Make sure there are no outstanding returns from the last 4 years
- Ensure any errors if any exist are corrected
- Make an application online
If you want to join the new scheme but cannot use the online service then you can contact the COVID helpline when the scheme opens on 0800 024 1222.
Pay VAT Deferred Due To COVID 19- Act Now
Your options on the VAT you owe are:
- Pay the deferred VAT in full on or before 31 March 2021
- Join the new VAT deferral scheme
If you do not take up one of the above options, then you may face interest or penalties.
Full details are available https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
If you need clarification on any of the above points either in confirming the new scheme will be applicable to you or help in getting old returns up to date please contact us ; [email protected] or call 01942 322767.
You can find more information about VAT here