How do I Pay Deferred Vat?
One of the ways the Chancellor helped business when Covid 19 first broke out was to allow VAT registered businesses to defer their VAT payments from quarter 2 2020 to 31st March 2021.
These deferred payments are due on 31st March 2021, however business remains in lockdown and as a result HMRC are allowing businesses to further defer their VAT debt over 11 monthly payments from March 2021.
The payments are interest free and must be made via direct debit.
To be eligible for the scheme you must be
Up to date with your VAT returns and payments
Join by 21st June 2021
Have deferred VAT to pay
Pay your first instalment when you join and there after by direct debit
How to apply for the scheme?
Each business must apply via their business Gateway account, make sure you know what you owe, that you are up to date on your VAT returns, payments and how you are going to pay it.
When to apply?
The scheme is open from today, 23rd February, apply before 19th March to maximise the time to pay, 11 instalments, after this the instalments drop by one each month until the closing date of 21st June 2021, when only 8 instalments are available.
If you have not signed up by 21st June 2021 you will have to pay the full amount or negotiate a repayment programme that may incur interest and fines.
If you have any questions or would like to discuss this further please contact me on 0203 006 0750