Reminder to sign up to pay VAT deferred due to COVID-19
A new payment scheme is open for all businesses who deferred paying VAT due between 20 March and 30 June 2020 due to COVID-19. The government originally said repayment of this VAT would be required by 31 March 2021 but the new scheme lets businesses pay deferred VAT in equal monthly instalments, interest free. If you have not yet joined the scheme, then you must do so by 21 June 2021 and then you can spread your payments across 8 monthly instalments.
Businesses may be charged a 5% penalty and/or interest if they do not sign up to the VAT deferral scheme by the deadline of 21 June or pay in full by 30 June. If businesses are still unable to pay and need more time, they should contact HMRC as soon as possible.
More information is available on HMRC’s website here.
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If you need help or advice with paying your VAT bill, please get in contact with our Indirect Team by completing our enquiry form
