Knowledge Base
Knowledgebase Support HMRC Useful links
Knowledgebase home
Tax Return Production
Accounts Production
Practice Management
VAT Filer
CloudConnect
Anti-Money Laundering
Support home
Video Training Guides
NEW

Hot Topics
SimpleStep Guides
Release Notes
Technical
Known Issues

HMRC Status
Useful Links
MTD for Agents MTD for Businesses What is MTD
Preparation
Agent Services Account
MTD for VAT
MTD for Income Tax
MTD for VAT
Digital Record Keeping
Quarterly Updates
Step-by-step Guide
HMRC's MTD Timeline
TaxCalc's MTD Journey

TaxCalc Blog

News and events from TaxCalc

Ben Handley (6)
08 June 2021

Have you paid your COVID19 deferred VAT?

Here are three ways to avoid paying a penalty or interest.

One of the COVID19 relief schemes in 2020 was the 'VAT Payments Deferral Scheme'. This automatically deferred any VAT liabilities from VAT quarters falling due between 20 March 2020 and 30 June 2020. Any amounts due between these dates were given a deferral until 31 March 2021.

If you haven’t yet paid these outstanding liabilities, don't worry – all is not lost!

With these three options, you may still be able to avoid the 5% penalty or interest.

You could:

  1. Pay the full amount due by the 30 June 2021.
  2. Join the 'VAT deferral new payment scheme' by 21 June 2021.
  3. Contact HMRC by 30 June 2021 and apply for 'extra help to pay'.

VAT deferral new payment scheme

In the Winter Economy Plan, Rishi Sunak announced an update to this scheme, the 'VAT deferral new payment scheme' allowing businesses that deferred until the 31 March 2021 an opportunity to spread the cost, interest-free, equally in up to 11 monthly instalments. However, unlike the original deferral scheme this is not automatically applied and businesses need to make an application.

Applications for the 'VAT deferral new payment scheme' need to be submitted by the 21 June 2021.

The number of instalments permitted is based on when you join the scheme. If an application is made from now up until the deadline you will be granted a maximum of 8 instalments.

For information on how and where to join the scheme please visit the Government's guidance page  .

Extra help to pay

HMRC has a special service to help with businesses struggling as a result of the pandemic. The Coronavirus (COVID-19) helpline   for businesses and the self-employed provides access to advisors who can discuss your situation and suggest arrangements to pay your liabilities. You can also discuss setting up a Time to Pay Arrangement with HMRC   - see under the 'If you cannot pay other taxes' section.

TaxCalc VAT Filer

File your clients' VAT returns to HMRC using both the Government Gateway and the MTD for VAT service for MTD registered clients.

From £78.00

Learn more

See a demonstration

Over 9,000 accountants and finance professionals trust our award-winning tax and accountancy software to take their practice forward in 2021.

 

Join a webinar
 

 

Print this article
Like

Share this article:

0

CommentsLog in
You must log in to comment.

Comments are subject to house rules

How to subscribe

Get the TaxCalc news as soon as we publish it!

To sign up, please log in or create an account.

Log in

How to comment

If you already have a TaxCalc account, you can comment on any articles written here.

To avoid using your actual name, you can create a special ID. Just log in and visit your customer account to create it.

Create your ID