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Businesses that deferred VAT payments last year have until 21 June 2021 to join online and pay in monthly instalments under the VAT deferral new payment scheme.
Jim Harra, HMRC’s Chief Executive, has said:
“Businesses that deferred paying their VAT last spring have until 21 June to join the VAT Deferral New Payment Scheme online. They should act now to avoid missing out on this opportunity to spread payment of their deferred VAT across monthly, interest-free, instalments.”
Although the online portal for the new payment scheme closes on 21 June 2021, businesses do have a range of options to avoid a 5% penalty. All options available to businesses are as follows.
As stated above, the online portal for the VAT deferral new payment scheme will close on 21 June 2021.
If your business is unable to access the online portal, you have until 30 June 2021 to call the HMRC Coronavirus Helpline on 0800 024 1222. In this instance your business will not be charged a penalty and you will be able pay the deferred VAT in up to eight interest-free instalments, with the first instalment payable upon joining.
Find out more here: Pay VAT deferred due to coronavirus
Your business will not be charged a penalty or interest where payment of the deferred VAT is settled in full by 30 June 2021.
If your business is not able to comply with the two options above, you can avoid the penalty charge by agreeing a time to pay arrangement with HMRC by 30 June 2021. However, in this instance, the repayments will not be interest-free.
Find out more here: If you cannot pay your tax bill on time
If you would like to know more about the VAT deferral new payment scheme or if you need any assistance or advice, please contact us.