One of the schemes announced by Rishi Sunak at the beginning of the pandemic was the option for businesses to defer VAT owed between 20 March and 30 June 2020.
Originally the VAT was deferred until 31 March 2021. HMRC have now announced several options to those businesses that took advantage of this VAT deferral. The options include:
- Pay the deferred VAT in full before the deadline of 31 March 2021.
- Take on a new VAT deferral payment period for the amount owed which will be launched in 2021.
- Contact HMRC if you need more help to pay.
The new VAT deferral payment (which has not yet been launched) will allow businesses to set up a payment scheme over 11 months, interest free. To be eligible for this scheme you must:
- Have VAT deferred from 2020.
- Ensure all VAT returns are up to date.
- Sign up before the end of March 2021
- Arrange payment of the first instalment before the end of March 2021.
- Set up a Direct Debit for the payment scheme.
You can find out more about paying your deferred VAT or how to opt into the new deferral scheme by visiting HMRC here
If you need any help or support with any of the above, please get in touch with the Clear Vision Financial Management team, call us on 01794 330025 or email us.