22nd April 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.
Failure to act may result in HMRC charging interest or a penalty.
What is the VAT deferral new payment scheme?
The new scheme opened on 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’re unable to pay via direct debit alternative payment methods will be available).
Businesses must join the scheme themselves by 21 June 2021 and 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 does not 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.
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