25th February 2021
News
CHW Accounting
If you took advantage of the Covid-19 VAT payment deferral scheme you have until 21 June to register with HMRC to repay the outstanding VAT by monthly instalments.
The deadline for payment in full or to opt into the monthly instalment plan was originally 31 March 2021 but has now been extended to 21 June 2021.
If you have deferred VAT payments due between 20 March and 30 June 2020 and still have amounts outstanding, you have the following options:
Failure to act may result in HMRC charging interest or a penalty.
What is the VAT deferral new payment scheme?
The new scheme was open from 23 February 2021 and is accessible via your HMRC Business Tax Account. The first instalment has to be paid when you apply to use the scheme, with the subsequent payments being made via direct debit (if you are unable to pay via direct debit alternative payment methods will be available).
Businesses must join the scheme themselves by 21 June 2021 information about how to do this can be found here https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
Unfortunately, agents cannot do this on behalf of clients as the HMRC software doesn’t allow for this.
To be eligible to use the scheme, businesses must have a balance outstanding to HMRC and all VAT returns must be submitted and up to date.
For larger businesses who are in the VAT payment-on-account regime, the scheme will be available to use towards the end of March.
Grab a biscuit and a brew and read our latest news.
8 March 2022
Temporary reduced VAT rate for leisure and hospitality to...
On 8 July 2020, as an urgent response to the pandemic, the government announced a number of VAT measures including a temporary reduction of the VAT…
1 March 2022
National Minimum and National Living Wage changes April 2022
From 1 April 2022, the government is increasing but the National Minimum and National Living Wage rates. The National Minimum Wage is the minimum amount an…
22 February 2022
Dividend taxes to rise from 6 April 2022 –...
The government has confirmed that it will not be backing down on the planned hike in National Insurance (NI) and dividend tax from April 2022. There…
10 January 2022
Late filing and late payment penalties are to be...
HMRC has given self-assessment taxpayers more time to ease COVID-19 pressures. With the self-assessment deadline less than three weeks away, many individuals and agents will be…
7 January 2022
Making tax digital for VAT – April 2022 –...
Since 1 April 2019, VAT-registered businesses with a turnover above the VAT registration threshold of £85,000 have been required to keep their records digitally and provide…
No matter what your challenge is, we’ve probably dealt with it before.