Companies that deferred VAT payments between 20 March and 30 June 2020 and have monies outstanding need to take action and join the VAT deferral new payment scheme by 21 June 2021. Those who do not join the scheme or settle the account before 30th June could be charged a 5 per cent penalty or interest on what they owe.
If businesses join by 21 April, they will pay their deferred VAT in 10 instalments, rather than nine or eight instalments if they wait until closer to the deadline. To join the scheme, a company must have:
- a Government Gateway account
- submitted any outstanding VAT returns from the last four years and corrected any errors on existing returns
- calculated how much it owes, including the amount originally deferred and how much has already been paid.
Companies must pay the first instalment upon joining the scheme and make subsequent payments via Direct Debit.
You can access the FIS Business and Taxation Toolkit here