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
This article has been reproduced by kind permission of Indicator – FL Memo Ltd. For details of their tax-saving products please visit www.indicator-flm.co.uk or call 01233 653500.