In light of the Covid-19 pandemic, the UK Government allowed VAT registered businesses to defer VAT payments until 31st March 2021. Those who deferred their VAT payments now need to decide how to pay the deferred amount, either paying up in full or setting up a pay by instalment plan.
If paying in full, this needs to be done by 31st March 2021, however the instalment option can be set up over a period of up to 11 months, interest free, depending on when you join the scheme.
If the instalment option is preferred, this needs to be set up via a new portal on the Gov.uk website no later than 21st June 2021.
There are a number of criteria that must be met before joining, including:
- Creating a Government Gateway account (if you don’t already have one)
- Submitting any outstanding VAT returns from the last 4 years
- Correcting any errors on VAT returns ASAP
- Making sure you know how much is owed, including the amount originally deferred
If we already look after your VAT returns, we will be in touch to discuss how you wish to move forward.
If you are currently dealing with your own VAT payments and would like help setting up the instalment scheme, please contact your account manager or drop us a line on 0114 266 4432 or [email protected]