The government has updated its advice for those businesses that deferred VAT payments due between 20 March and 30 June 2020 and still have payments to make.
- pay the deferred VAT in full, on or before 31 March 2021.
- join the VAT deferral new payment scheme – the online service is open between 23 February and 21 June 2021.
- contact HMRC on 0800 024 1222 by 30 June if they need extra help to pay.
But HMRC is warning that companies may be charged interest or a penalty if they do not:
- pay the deferred VAT in full by 31 March 2021.
- opt into the new payment scheme by 21 June 2021.
- agree extra help to pay with HMRC by 30 June 2021.
The VAT deferral new payment scheme will be open from 23 February up to and including 21 June 2021.
Companies on the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme will be invited by HMRC to join the new payment scheme in March 2021.
The new scheme allows them to pay deferred VAT in equal instalments interest free, and choose the number of instalments (from two to 11, depending on when they join).
Companies can still join the scheme even if they have a Time to Pay arrangement for other HMRC debts and outstanding tax.
For full details go to https://tinyurl.com/5jgw1adk