If you deferred paying VAT due between 20th March and 30th June 2020 and it isstill outstanding, you now have to make some choices.
Pay the deferred VAT in full
This will have to be completed on or before the 31st March 2021. It is worth remembering that before you pay your bill you should check that your deadline has not expired. To check your deadlines, check your VAT return via your online account
Register to join the deferral payment scheme
HMRC established this scheme in February and it is only available until 21st June 2021.
The scheme allows you to pay any outstanding payments in equal instalments, interest free. Payment instalments range from 2 to a maximum of 11 depending upon when you register. The scheme will determine the number of payment instalments when you join.
To join the scheme the following criteria must be adhered to:
You must apply for the scheme yourself; your accountant/agent cannot undertake this on your behalf.
You must pay the first instalment when you join the scheme
Know how much you owe, including the amount, you deferred in 2020 and the amount you have already paid.
If you need additional help then contact HMRC and do so before 30th June 2021. You can speak to an advisor and discuss your situation.
It is wise to speak to HMRC earlier rather than later as doing so may help you avoid any late payment penalties being applied to the amount you owe. Payment plan arrangements can be made with HMRC.
If you would like to pay off your VAT bill but don’t want to impact your cash flow then consider a specialist VAT loan. Contact the team at Just Cashflow to discuss your funding options. 0121 277 6450.