Hold on to your hats. It's another riveting Rishi plan!
Did you defer paying your VAT between 20th March and 30th June 2020 due to Covid-19?
If so here are your current options;
1. Pay the deferred VAT in full on or before 31st March 2021
2. Join the VAT deferral scheme (more details below) by 21st June 2021
3. Contact HMRC on 0800 024 1222 by 30th June 2021 if you need extra help to pay.
If you fail to do any of the about then you may be charged interest or a penalty
So what is the new scheme?
Open from 23rd February 2021 up to and including 21st June 2021.
The scheme allows you to pay the VAT deferred in equal, interest free instalments. The amount of instalments you can choose depends on when you join from 2 to 11. So the sooner you join up the lower those monthly payments will be.
If you join by: Number of instalments available to you:
19 March 2021 11
21 April 2021 10
19 May 2021 9
21 June 2021 8
What do I need to do?
· Join the scheme yourself. Your VAT agent cannot do this for you.
· Join by 21st June 2021
· Pay the first instalment when you join.
· Pay instalments by direct debit
· Create a Government Gateway if you do not already have one
· Submit any outstanding VAT returns from the last 4 years – You will not be allowed to join the scheme if not up to date.
· Make sure you know how much you owe. Original amount less any payments already made.
There are some variances to this process if you are on annual VAT Accounting or Payment on account scheme or unable to access the online accounts in the normal way
Further Details available here; https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
Any questions, you know where I am, please do get in touch. Always happy to help where I can.