One month left to join VAT Deferral Payment Scheme
Businesses that deferred VAT payments last year have until 21 June 2021 to join the new online payment scheme. This would allow them to spread the cost of repayment over a number of months. The VAT deferral scheme is open to businesses that took the option to defer the payment of their VAT liabilities between 20 March 2020 and 30 June 2020.
Under the scheme, businesses have the option to pay their deferred VAT in smaller payments over a longer period and interest free. Instead of having to repay the full amount by 31 March 2021, businesses can make smaller interest-free payments during the 2021-22 financial year and complete payment of any arrears by 31 March 2022.
The maximum number of instalments allowed under the scheme is based on the date businesses sign up for the scheme. The first instalment must be paid on joining the scheme. The March, April and May joining dates have passed but businesses that join by 21 June 2021 (the last available date) can pay in eight instalments.
Businesses must also meet certain conditions to use the scheme including being up to date with their VAT returns. HMRC has confirmed that businesses may be charged a 5% penalty or interest if they do not pay the VAT in full, sign up to the scheme or arrange to pay by 30 June 2021.
Latest News
- Payrolling employee expenses and benefits
18/04/2024 - More...
Employers can register on a voluntary basis (before the start of the tax year) to report and account for tax on certain
- Changes to Scottish Income Tax rates 2024-25
18/04/2024 - More...
A reminder of the changes to Scottish Income Tax rates for the 2024-25 tax year. It was announced as part of the
- Taxable employment benefits from April 2026
18/04/2024 - More...
From April 2026, the government will mandate the reporting and paying of Income Tax and Class 1A National Insurance
Newsletter
With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!