Deferred VAT payment scheme launches
Many businesses took advantage of the VAT deferral scheme and have been awaiting guidance on how to spread the repayment of the deferred amount. The scheme has now launched, so what are the key points?
The government says that over 500,000 businesses used the VAT deferral scheme in 2020. Originally, the due date for deferred amounts was to be 31 March 2021. However, due to the ongoing restrictions the government announced that it would launch a new payment scheme that affected businesses could opt into to spread the repayment over a year instead. To join the scheme portal click here
Businesses can spread their payments with two to eleven equal monthly instalments, interest free. Payments can start from March 2021, and the earlier businesses opt in, the more instalments are available to help spread the cost and provide further support. In order to qualify and opt into the new payment scheme, you must:
• join the scheme yourself, your accountant cannot do this for you
• still have deferred VAT to pay
• be up to date with your VAT returns
• join by 21 June 2021
• pay the first instalment when you join
• pay your instalments by Direct Debit.
Related Topics
-
Delay salary to save tax
As a company owner manager, you decide when to take income from your business. If that’s your only source of income, tax planning is relatively simple but it’s trickier if you have other sources. What’s the best strategy to improve tax efficiency?
-
Loan written off: are you in HMRC’s crosshairs?
HMRC is writing to directors that took a loan from their company that was later written off or released. What should you do if you receive a letter?
-
Cutting the cost of a company car
You want to help your young son replace the ancient car he currently drives. The plan is for your company to buy it but for the running costs to be met by your son. That’s fine with him but is there a more tax and cost-effective alternative?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.