VAT deadline imminent
If a business has used the VAT deferral scheme in 2020 they have less than two weeks to make their intentions for repayment known. What do they need to do and what are the consequences if they miss the cut-off?
The payments due under the deferred VAT scheme were strictly due by 31 March 2021. However, the government introduced its “VAT deferral new payment scheme” as a way to allow businesses to spread the cost over up to eleven instalments instead. Any business wanting to use the new scheme must enrol by 21 June. At this stage, the maximum number of instalments that can be used is eight.
If a business has deferred VAT and misses this deadline, it must pay in full by 30 June 2021 or a penalty of 5% of the outstanding amount may be applied. Any business struggling to make payment should contact the Payment Support Service on 0300 200 3835 before 30 June to try to agree an alternative arrangement.
Related Topics
-
Government unveils business rates cuts and late licensing boost for pubs
Pubs will see their business rates cut and licensing rules relaxed under a new support package aimed at reviving high streets and protecting local community hubs. What’s changing and what does it mean for the trade?
-
Is it really the end of tax relief for homeworking?
In her 2025 Budget the Chancellor announced the end of tax deductions for “non-reimbursed homeworking expenses”. How might the loss of the deduction affect you and is there an alternative tax relief you can take advantage of?
-
HMRC threatens bogus penalties
Correspondence from HMRC suggests there's a penalty if you don't pay your self-assessment tax bill by Saturday, 31 January. This isn't strictly true, but what are your options if you can't pay on time?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.