Avoid a penalty for deferred VAT
During the pandemic, the Chancellor Rishi Sunak announced details of a VAT deferral scheme in order to support struggling businesses.
The scheme allowed businesses to defer their VAT between 20th March 2020 and 30th June 2020. Those outstanding VAT payments are due for payment by 30th June 2021. HMRC have now confirmed that if the VAT deferred is not paid by 30th June 2021, then businesses will be liable for a 5% penalty or interest.
However, there is the option to set up a payment plan directly with HMRC in order to pay back the deferred VAT. Businesses have until 21st June to opt into the payment scheme and HMRC will allow them to pay the VAT back as follows:
Number of instalments Deadline
10 21st April 2021
9 18th May 2021
8 21st June 2021
You can find out more about the new payment plan and sign up here.
Clear Vision Financial Management are a team of accountants based in Romsey and Poole, if you would like any advice on your accounting needs, please do get in touch. You can call us on 01794 330025 or email us.