When the world stopped and businesses were forced to grind to a halt because of Covid it was a great help to us all to not have to pay VAT due last Spring. But as with all debts, you can run but you can’t hide and the day of reckoning will soon be with us. Enter the new VAT Deferral Payment Scheme which opened for applications today (23 February 2021) and will let you defer your deferred VAT.
The scheme is open to any VAT registrations that previously deferred paying VAT due in the period from 20 March to 30 June 2020. Whether you are unable or unwilling to pay the deferred VAT by 31st March 2021, you can join the new VAT Deferral Payment Scheme and stretch out payment of your deferred VAT over a longer period of up to 11 months.
The online service opened today 23 February 2021 and will close on 21 June 2021. Click here for details. Applicants can choose how long to spread out their payments and make as many as 11 monthly instalments, interest free. Of course the earlier a VAT registered organisation joins the scheme, the more months are available for the spread of payments.
It is worth highlighting that this new scheme is not a replacement for the normal time to pay agreements that might be reached with HMRC so anyone needing more time to pay than provided for under the scheme should contact HMRC without delay. These situations bring out the inner ostrich in all of us and it will always be hard for anyone faced with needing time to pay but HMRC will generally respond well to people holding up their hands and trying to sort out any VAT debt issues so this is definitely something worth early attention.
As ever AVS VAT will be happy to help with anything that is giving you a headache so please don’t hesitate getting in touch and we’ll be pleased to hear from you.