Part of the business relief package offered during the Covid-19 pandemic was the opportunity for businesses to defer paying their VAT payments to the 31st March 2021 for payments that would have become due between March 2020 and June 2020 . However, the scheme has now been extended and businesses can opt to make the deferred payments by instalments, of up to 11 months, interest free, rather than paying in full by the 31st March 2021. Should you decide to opt to join the scheme the full amount of the VAT deferred must be paid by the end of March 2022.
The VAT payment deferral scheme opened on the 23rd February 2021
Businesses have 3 options –
- Pay the deferred VAT in full by the 31st March 2021
- Join the VAT deferral payment scheme online between the 23rd February and 21st June 2021
- Contact HMRC on 0800 024 1222 by 30th June 2021 if they are unable to use the online service
Payments can start in March 2021 with between two and eleven consecutive instalments being made to clear the VAT deferred.
The number of instalments can be less than the maximum but the maximum depends on when you join the scheme – if you join by
- 19 March – the maximum number of instalments is 11
- 21 April – the maximum number of instalments is 10
- 19 May – the maximum number of instalments is 9
- 21 June – the maximum number of instalments is 8
Although agents cannot set the scheme up for their clients, as the payments need to be made by Direct Debit, should you require any help or have any questions, as always, we at Synergy should be pleased to hear from you.
Contact Koreen on 07531741287 or by e-mail koreen@synergyaccounting.co.uk
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About the Author:
Koreen is a Member in Practice of The Association of Accounting Technicians, which means that she is both licensed and regulated by the AAT. However Koreen is also a Fellow Member which is an acknowledgement by the AAT of her senior status in terms of knowledge and experience.