On 24th September 2020 the UK Chancellor announced that businesses who deferred VAT due from 20 March to 30 June 2020 will now have more time to pay VAT from this period. The original deadline for this VAT was 31st March 2021.
Instead of paying the full amount by the end of March 2021, you can make smaller payments up to the end of March 2022, interest free. You will need to opt-in to the scheme, and for those who do, this means that your VAT liabilities due between 20 March and 30 June 2020 do not need to be paid in full until the end of March 2022.
You may receive a letter from HMRC saying that your deferred VAT needs to be paid by March 2021, but the letter was printed just a day before the announcement from Rishi Sunak. You can still pay your deferred VAT by 31st March 2021, but there will also be a scheme to spread any outstanding balance over the following 12 months.
Log in to your HMRC online account (Gateway account) and select View your VAT account.
If you deferred payment of your VAT due between 20th March and 30th June you should see an overdue notification and can click on the Check what you owe link to view the balance due.
If you want to start paying your VAT before 31st March 2021, the easiest way to do this is by bank transfer. Additional payments made before March 2021 will be applied to your overdue balance.
|Sort Code||08 32 00|
|Account Name||HMRC VAT
|Payment Reference||Your VAT Number (e.g. 123456789)|
Check the gov.uk website for details on opting in to the scheme for more time to pay VAT.
See here for the article on setting up a Direct Debit for VAT.
Alterledger Ltd is licensed by the Chartered Institute of Management Accountants and registered with the Information Commissioners Office.
© 2020 Alterledger Ltd
Website by Haiwyre