VAT Deferral Scheme Deadline – 21st June 2021
In response to the Covid-19 crisis, the government has allowed businesses to defer certain VAT payments with the intention of easing cashflow pressures on businesses over the peak of the pandemic. This scheme closes on 21st June 2021 so if you don’t join the scheme before this time you be unable to after this date.
Over half a million businesses deferred £34 billion in VAT payments due between March and June 2020 under the VAT Payment Deferral Scheme. Businesses had until 31 March 2021 to pay this deferred VAT or, if they could not afford to do so, they could go online from 23 February to set up a new payment scheme and pay by monthly instalments to spread the cost.
The VAT Deferral New Payment Scheme means businesses can now manage their cashflow by paying their deferred VAT more gradually.
The March, April and May joining dates have passed, but businesses can still spread their payments across up to eight equal monthly instalments, interest-free, if they join by 21 June 2021. Payments can easily be set up via the VAT Deferral New Payment Scheme portal.
Unable to use the online portal?
Eligible businesses that are unable to use online service by 21 June 2021, can call the HMRC Coronavirus Helpline on 0800 024 1222 to join the scheme until 30 June 2021.
Note: Businesses may be charged a 5% penalty and/or interest if they do not join up to the scheme online by 21 June, or pay in full by 30 June, or contact HMRC to arrange to pay by 30 June 2021.
Businesses should also contact HMRC by 30 June 2021 if they need to agree extra help to pay.
Businesses can pay their deferred VAT in 2 to 8 consecutive instalments without adding interest if they join online by 21 June 2021. The first payment is made when they join.
The joining stage is slightly longer for those unable to use our online service due to the way payments are processed.
Summary
If you want to ensure you can defer VAT payments and take advantage of the interest free payment scheme then make sure you sign up before 21st June 2021. If you can’t use the online service, call the HMRC on 0800 024 1222 for further details.
How We Work
Working with us couldn’t be easier and we make switching simple…
Step 1.
Book A FREE Consultation
Contact us to book your FREE initial consultation. We’ll work around times that best suit you.
Step 2.
Initial Discussion
We take the time to get to know you and your business, your challenges and expected outcome.
Step 3.
Recommend Options
We’ll review and present our recommended options in plain english with associated fees.
What’s Included
It’s important you make a good connection with your accountant. Your accountant will become an extension of your business, working with you, for you.
Our initial free consultation allows us to get to know each other and for us to understand your challenges. We’ll also explain how we think we can make a difference. Here’s what you should expect in your initial consultation.
Typical consultations take around an hour, so we won’t take up too much of your time.
Don’t worry about preparing lots of information for us ahead of the meeting, it is not necessary.
If you would like to send us your last return, we’ll happily take a look before we meet.
We can meet at your convenience. Out of hours and even weekends, just let us know.
There’s no obligation and we will happily answer any questions you may have.
Book a FREE Consultation
Please complete the form below and we will get back to you promptly.
Franks Accountants respect our customers privacy. Rest assured, we will never pass your details on to any other companies.