Like many businesses in the UK, you may have deferred VAT payments between 20 March and 30 June 2020. If this is your situation and you still have payments to make, then you may be interested to know that there are some options available to you. You can:
- pay the deferred VAT in full on or before 31 March 2021
- opt into the VAT deferral new payment scheme when it launches in 2021
- contact HMRC if you need more help to pay
New VAT Payment Scheme
Businesses cannot yet opt into the new payment scheme as this won’t be made available until early 2021. Businesses will have to opt them themselves representatives, such as Hawsons, cannot do this for you.
It is expected that the payment scheme will enable businesses to make 11 monthly instalments, interest-free. All instalments must be paid by March 2022. This scheme will allow you to select the number of instalments from 2 to 11 equal monthly payments.
To be eligible for the scheme you must:
- Still have deferred VAT to pay
- Be up to date with your VAT returns
- Opt-in before the end of March 2021
- Pay the first instalment before the of March 2021
- Be able to pay the deferred VAT by Direct Debit
So, it is very important that you keep up to date with your VAT returns.
How our VAT experts can help?
At Hawsons our VAT consultant Tony Nickson can provide expert VAT advice. Tony spent 20 years working in the VAT office, Tony has gained a wealth of knowledge of VAT processes, including VAT visits to customers, client education, VAT repayments, and error corrections.
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