HMRC have announced from 23 February 2021 that the VAT deferral scheme is open and available to use for VAT registered businesses that decided to defer their VAT liability between 20 March 2020 and 30 June 2020.
It only applies to VAT that was deferred during that period, not any liabilities that have arisen subsequently. The scheme is designed to allow further time to settle the deferred VAT liability.
The specific details can be found on their website:
Pay VAT deferred due to coronavirus (COVID-19) – GOV.UK (www.gov.uk)
The key points are:
- All VAT returns must be up to date and have been submitted for the last 4 years
- The VAT registered business has to make the application (by way of a Government Gateway account) and cannot be applied for by an agent on their behalf
- The scheme can be used in conjunction with any other “Time to Pay” arrangements
- The scheme is open until 21 June 2021
- The agreed instalments are interest free
If Dickinson’s act as your agent in respect of VAT returns, we will be able to provide you with information to confirm any deferred amounts and other details you may require to set up the instalment plan.
Please feel free to contact a member of the team if you have any questions.