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 announced the option that businesses could take on a new VAT deferred payment period for the amount outstanding.
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.
VAT registered businesses can choose to make 11 smaller interest-free payments under the VAT deferral scheme. In order to set this scheme up, eligible businesses must sign up by 31st March 2021.
You can find out more about paying your deferred VAT or how to opt into the new deferral scheme by visiting HMRC here.
Clear Vision Financial Management are a team of accountants based in Romsey and Poole, if you would like any advice on deferring your VAT, please do get in touch. You can call us on 01794 330025 or email us.