Covid-19 Business Update 24 – Monday 23rd November 2020
Following our previous update on 6th November, please find below notable changes that have been released via gov.uk.
Covid-19 VAT Deferral – UPDATE
On 20th November, HMRC announced a new payment scheme in regard to the COVID-19 deferred VAT.
If you deferred VAT between 20th March and 30th June 2020 and still have payments to make, you can:
- Pay the deferred VAT in full on or before 31 March 2021;
- Opt in to the VAT deferral new payment scheme when it launches in 2021;
- Contact HMRC if you need more help to pay.
You cannot opt in yet. The online opt in process will be available in early 2021.
You must opt in yourself, your agent cannot do this for you.
Instead of paying the full amount by the end of March 2021, you can make up to 11 smaller monthly instalments, interest free.
All instalments must be paid by the end of March 2022.
The scheme will allow you to:
- Pay your deferred VAT in instalments without adding interest
- Select the number of instalments from 2 to 11 equal monthly payment.
To use this scheme you must:
- Still have deferred VAT to pay;
- Be up to date with your VAT returns;
- Be able to pay the deferred VAT by Direct Debit.
If you opt in to the scheme, you can still have a time to pay arrangement for other HMRC debts and outstanding tax.
Before opting in you must:
- Create your own Government Gateway account if you don’t already have one;
- Submit any outstanding VAT returns from the last 4 years. You will not be able to join the scheme if you have not done so;
- Correct errors on your VAT returns as soon as possible. Corrections received after 31 December 2020 may not show in your deferred VAT balance;
- Make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid.
We will continue to closely monitor all developments as they progress and communicate these with you as soon as we can, to keep you fully informed.Return to our Dedicated Page for Covid-19 Client Updates