VAT Deferral Scheme Deadline Looming…

Coronavirus, VAT,

We’ve talked before about the COVID VAT Deferral Payment Scheme, which enables businesses to spread the payments of VAT that were deferred from the first quarter of 2020. We’ve also looked at the penalties that may apply if they are not paid in time.

The purpose of this post is a simple one, to remind any of you that haven’t yet joined the scheme to do so – quickly!

The scheme closes on the 21st June 2021, less than a month from now.

Any business who deferred their VAT payment for that first quarter of 2020, and who hasn’t either paid it already, or joined the scheme, will lose out on the chance to spread the amount across eight interest-free instalments.

Those who fail to sign up for the scheme can be charged a 5% penalty and/or interest if they do not join the scheme online by 21 June, or pay in full by 30 June, or contact HMRC to make an arrangement to pay by 30th June 2021. Businesses should also contact HMRC by 30th June 2021 if they need to agree extra help to pay.

You can find out more and join the scheme here. As ever, if you’d like to discuss your VAT, cashflow or anything else please get in touch.

 

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