One of the COVID19 reliefs HMRC offered was a VAT deferral of payments. Those unable to make payment of VAT were able to defer these payments from 20 March 2020 to 30 June 2020 and payments would become due by 31 March 2021.
HMRC have added a new deferral payment scheme, and the payments that are due by 31 March 2021 can now be deferred further and repaid over a longer period.
This deferred payment scheme will be an online service that businesses will need to apply for. Applications for this service will open on 23 February 2021 and will close on 21 June 2021.
The new scheme will allow businesses to make up to 11 monthly installments, interest free. This means that the earlier businesses join the scheme, the longer the period available to spread their payments over.
There are requirements to be met in order to qualify for this additional relief:
Businesses need to:
- Join the scheme; agents cannot do this on their behalf.
- Have deferred VAT still to pay.
- Have all VAT returns submitted and up to date.
- Join the scheme by deadline 21 June 2021.
- Be able to pay the first installment on signing up.
- Pay installments by direct debit (if unable to do so there is an alternative sign up route)
For more information on the new payment relief scheme visit: Pay VAT deferred due to coronavirus (COVID-19) – GOV.UK (www.gov.uk)
For help with all your VAT and business requirements, please contact us at info@sailsolutions.co.uk
