Paying your deferred VAT
If you took the opportunity to defer your vat payment between March and June 2020, then you must act before 21st June 2021 to either pay in full or set up a payment plan with HMRC otherwise you will incur 5% penalty.
Last year at the start of the covid pandemic, the government allowed businesses to defer VAT payments for one quarter but now that outstanding VAT is due.
Businesses that deferred VAT payments due between 20 March 2020 and 30 June 2020 can either choose to pay the deferred VAT in full or join the “VAT deferral payment scheme”.
There is an online VAT deferral notification service at https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19 where you can set up your payment plan. You will need to do this via your government gateway so if you do not know your user name and password we suggest that you start the process now to make sure you have all the credentials in good time.
The VAT deferral payment scheme allows you to schedule payments on a monthly basis. The scheme lets you pay your deferred VAT in equal instalments, interest-free; and choose the number of instalments by direct debit, from 2 to 11 (depending on when you join).
|If you join by||Number of instalments|
|21st April 2021||10|
|19th May 2021||9|
|21s June 2021||8|
Here at PJCO Chartered Certified Accountants, we can help you through the process but you will need to register for your own Government Gateway as we cannot do this for you as tax agents.