HM Revenue & Customs (HMRC) has published an update on the new opt-in payment scheme that will be available to customers who deferred their VAT payments between 20 March-30 June 2020.
If you deferred VAT during this period, and still have payments to make, you can do one of three things:
- Pay the deferred VAT in full on or before 31 March 2021
- Opt-in to the VAT deferral new payment scheme when it launches in the new year
- Contact HMRC if you need more help to pay
Customers will need to opt-in to the new payment scheme themselves but cannot do so until early 2021 when the online process will be up and running.
By opting in to the scheme you are able to pay deferred VAT in instalments, from two to 11 equal monthly payments, without adding interest. However, there are conditions that must be met should you wish to take advantage of the arrangement. You must:
- Still have deferred VAT to pay;
- be up to date with your VAT returns;
- opt in and pay the first instalment before the end of March 2021; and,
- be able to pay the deferred VAT by Direct Debit.
Whilst the opt-in process is not yet available, those planning to opt-in can ready themselves to do so.
You should have submitted any outstanding VAT returns from the last 4 years and corrected any errors on returns, before opting in.
You will also need to know how much you owe, including the amount deferred and any amount already settled, plus the number of instalments you may require.
Customers who do not already have a Government Gateway account must set one up in order to be able to participate in the scheme.
As always, if you can afford to settle your liability either in full or partially, we would encourage you to do so. Partial settlements should be dealt with sooner, rather than later, so that the correct deferred balance is shown on your account.
How can George Hay help?
As we continue to stress, now more than ever it is essential that you maintain accurate and timely accounting records, that you review your cashflow regularly and that you are aware of your tax liabilities, both now and in the longer-term.
If you are concerned about fulfilling your existing tax liabilities, please communicate this to your usual adviser who will be able to advise you accordingly.
To discuss your circumstances in more detail with one of our professionals, contact us today.
