This article is a reminder not to delay if you want to join the VAT deferral payment scheme in order to spread payments of the VAT you deferred in the period from 20th March to 30th June 2020.
To re-cap, in amongst the raft of measures to assist businesses during the COVID pandemic, HMRC introduced a VAT deferral scheme last year which allowed businesses to defer VAT payments which were due between 20th March 2020 and 30th June 2020. Initially, the deferred amount was due to be paid to HMRC by 31st March 2021. However, this was later extended by three months, and a payment scheme was introduced, allowing businesses to spread the payment across up to eight instalments.
The last day that you can join the payment scheme is 21st June.
You need to join the scheme online. Details of the scheme and access to joining are available here on the gov.uk website.
Please note that you may be charged a 5% penalty and/or interest if you do not join online by the deadline of 21st June or pay the total deferred VAT in full by 30th June.
If you require guidance on any of the above, please contact your TC partner on 0330 088 7111.