Deferred VAT from 2020: Urgent upcoming deadline for further deferral (apply online by 21 June 2021)

The Covid-19 VAT payment deferral was announced by the government on 20 March 2020 as one of the support measures to support businesses during the first wave of the Covid-19 crisis.

Businesses that deferred VAT (otherwise originally due between 20 March 2020 and 30 June 2020) have until 21 June 2021, to register online to further spread the VAT arrears over a maximum of eight instalments.

Alternatively, businesses will need to either pay the arrears in full by 30 June 2021, or at the very least, contact HMRC to make alternative arrangements. Failure to do something may result in a 5% penalty and/or interest being levied.

The online application process must be done by the business (rather than their Agent/Accountant) – the link below explains what is required and how to commence the online application process:

https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19.

If you need help or wish to discuss your specific situation, please contact us on 0161 767 1291.