VAT deferral new payment scheme – last call

The Scheme allows those registered to spread the cost of the deferred VAT payments from last year over 8 months. With just one week left before the portal closes, make sure that you have registered if you want to take advantage of the deferral scheme.

The VAT deferral payment scheme was launched as part of the Chancellors Winter Economy Plan to help businesses spread the cost of VAT payments which were deferred between 20 March and 30 June 2020.

What you need to do

If you deferred VAT payments due between 20 March and 30 June 2020, you can:

• Pay the deferred amount in full before 30 June 2021
• Join the VAT deferral new payment scheme
• Contact HMRC if you need extra help to pay

Failure to do any of the above by 30 June could result in a 5% penalty or interest on the outstanding amount being charged.

If for any reason you cannot sign up to the scheme or cannot afford the payments we strongly recommend that you contact HMRC before 30 June 2021. With many businesses still struggling with the continual impacts of the coronavirus pandemic, it is more important than ever that you ensure you can afford to pay any debts owing to HMRC. If you have any concerns about meeting your tax obligations do ring the HMRC helpline on 0300 200 3822. The helpline was set up to assist businesses to:

• Agree instalment arrangement’s
• Suspend debt collection proceedings
• Avoid penalties and interest

We also recommend that you prepare and regularly review your cash-flow forecasts and projections to help to mitigate any impacts of repayments furthers down the line. The financial impacts of paying back deferred payments and any loans taken need to be carefully managed.

Do contact us should you need any help with your cash-flow forecasting and projections. Making sure you have a clear plan in place is critical.