Pro-actions Director Stuart O’Neill explains how HMRC’s new VAT deferral scheme works, and how it could help your business if you deferred your tax payments last year.
If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you have some choices as to how to clear the amount you owe. You can:
• Pay the deferred VAT in full on or before 31 March 2021 using your normal payment method
• Opt into the new VAT deferral payment scheme from 23 February
• Contact HMRC if you need more help to pay
When the new online opt in process goes live next Tuesday (23 February) only business owners will be able to opt in – i.e. your accountant or tax agent won’t be able to do it for you. The new scheme will enable you to make up to 11 monthly instalments, interest-free, to clear your deferred amount by the end of March 2022. This may well be attractive from a cash-management perspective.
In the meanwhile CLICK HERE to read the full feature about what you can do to get ready to opt into the new payment scheme.