At the start of the lockdown last year, VAT payments due between 20 March and 30 June 2020 were automatically deferred to 31 March 2021. The Chancellor then introduced introduced the VAT Deferral New Payment Scheme in the Winter Economy Plan last September. If your business deferred VAT between 20 March and 30 June 2020 and still had payments to make, you could choose to pay off the deferred VAT over 2-11 monthly instalments by 31 March 2022, interest-free, via Direct Debit.
There are various deadlines to be aware of this month. To avoid 5% penalties and interest, businesses should:
- Pay their deferred VAT in full by 30 June; or
- Opt in to the VAT Deferral New Payment Scheme online by 21 June; or
- Agree a Time to Pay arrangement with HMRC by 30 June
Joining the VAT Deferral New Payment Scheme
All businesses which took advantage of the VAT deferral are now eligible to use the scheme.
HMRC have made it clear that businesses must opt in themselves with a Government Gateway account and that agents are unable to do so for them. Businesses can opt in here.
This means that although BKL can’t opt your business into the scheme for you, we can still help you to prepare, including assistance with your VAT returns.
If you would like to discuss this or any other VAT matters with us, please get in touch with your usual BKL contact or use our enquiry form.