Any business which deferred any VAT payment due between 20 March 2020 and 30 June 2020 under the COVID-19 support arrangements, should now have taken, or be about to take, one of the following steps:
- pay the deferred VAT in full, by 30 June at the latest;
- join the VAT deferral new payment scheme – the online service is open until 21 June 2021. Any business joining now will be able to spread payment of the liability over a maximum of eight instalments during the period to 31 January 2022; or
- contact HMRC by 30 June if extra help to pay is needed.
The business may be charged a 5% penalty or interest if, by 30 June, it does not pay the outstanding debt in full, or make an arrangement to pay.
If you have any questions about deferred VAT payments or other indirect taxes queries, please contact Julian Millinchamp at julian.millinchamp@hazlewoods.co.uk or 01242 237661.