During the peak of the pandemic last year, to support cashflow VAT-registered businesses were able to defer VAT payments between March and June 2020. Businesses who couldn’t pay the deferred VAT by the initial deadline of 31st March 2021, were able to set up a new payment plan from 23rd February with the new scheme. The deadline for this deferred VAT is 30th June 2021 – which is now fast approaching.
Businesses are being urged to do one of the following;
- Join the scheme by 21st June 2021
- Pay in full by 30th June
- Contact HMRC to arrange a payment plan by the 30th June
If a business who deferred VAT payments hasn’t done any of the above by the deadline, they risk being charged a 5% penalty and/or interest.
If you need to join the scheme, make sure to do this by the 21st June, and you will need to do the following;
- Have your VAT registration number handy
- If you do not already have your own Government Gateway account, you will need to create one
- Any outstanding VAT returns from the last 4 years will need to be submitted – otherwise you won’t be able to join the scheme
- Any errors on your VAT should be corrected as soon as possible
- Make sure you know how much VAT you owe – also include the amount you originally deferred and how much you have paid so far
If you need any advice on VAT, get in touch with the BK Plus team at email@example.com