Deferral of VAT payments

26th November 2020

At the start of the pandemic, HMRC allowed businesses with a VAT liability falling due between 20 March and 30 June 2020 to defer their payment. Over half a million businesses benefitted from the measure, deferring more than £28 billion in VAT payments.

 

Originally, businesses were required to pay the deferred VAT in full on or before 31 March 2021.  However, as part of the Winter Economy Plan announced on 24 September 2020, businesses can choose to opt into the VAT Deferral Scheme when it launches in 2021. The Scheme will allow businesses to:

 

  • Pay your deferred VAT in instalments without any interest, and
  • Select the number of instalments from 2 to 11 equal monthly payments.

 

All payments must be made by 31 March 2022.

 

To use this Scheme, your business must:

  • Still have deferred VAT to pay,
  • Be up to date with your VAT returns, and
  • Be able to pay the deferred VAT by Direct Debit.

 

Further details, including how to get ready to opt in to the scheme, can be found here: Pay VAT deferred due to coronavirus (COVID-19) – GOV.UK (www.gov.uk)

 

You will be able to opt into the scheme from early 2021, please get in touch with your local Whiting & Partners contact for more information.



 
Other items in Blogs
 
Richard Alecock
13th January 2021 Information on local business grants from West Suffolk Council

Find out the up-to-date information on local business grants from West Suffolk Council during the COVID-19 pandemic:   COVID-19 support for business – grants (westsuffolk.gov.uk)

Read More »

Jonathan Moore
8th January 2021 New lockdown grants to support businesses and protect jobs

On 5th January 2021 the Chancellor announced new one-off top up grants for retail, hospitality and leisure businesses worth up to £9,000 per property to help businesses through the new lockdown.   The one-off top-ups will be granted to closed businesses as follows:   £4,000 for businesses with a rateable value of £15,000 or under…

Read More »

Chris Kelly
8th January 2021 Wrongful Trading Liability Suspension – Renewed 26 November 2020

In March 2020 the Government temporarily suspended wrongful trading provisions until 30 September 2020.   The purpose of this measure had been to ensure that company directors could continue to operate during Covid-19 without worrying about becoming personally liable for wrongful trading.   On 26 November 2020, following the 2nd lock down, new legislation came…

Read More »

Jaimie King
4th January 2021 Coronavirus loan scheme deadline extended

On 17th December the government announced a further extension to the Coronavirus Business Interruption Scheme loans (CBILS) – meaning that businesses now have until 31st March 2021 (previously 31st January) to apply.   This welcome announcement means that more businesses will be able to enter the loan scheme, benefitting from the needed funds during these…

Read More »

Nick Edgley
18th December 2020 Don’t miss 31 January deadline for filing your Self-Assessment Tax Return

The New Year is approaching and so is the deadline for filing your Self-Assessment Tax return – January 31, 2021.  Our tax experts can ensure everything is completed accurately and submitted on time.   If you need help or advice with your tax return or any other accounting or financial matters, please contact your local…

Read More »

Ian Piper
8th December 2020 BREXIT: Is your SME ready?

As 1-Jan-21 draws ever nearer what changes should your SME business prepare to adopt ready for Brexit: Exporting Goods to the EU  Despatches are renamed exports. Apply for an EORI number (which will look something like: GB123456789123). Check whether what you sell is a restricted good that requires an export licence. Check whether there are…

Read More »