Make sure you “OPT IN” to defer your 2020 VAT liabilities
Many VAT registered organisations took advantage of the VAT Deferral Scheme with the government offered as the COVID 19 outbreak took hold. This deferral covered VAT liabilities due in the period from the 20 March to the 30 June 2020.
Those deferred VAT amounts will be due for payment by the 31st March 2021 and you can choose to pay this liability off in full by that date. However, HMRC have announced a further cashflow opportunity for businesses to access which will be invaluable to those in financial need. This new VAT payment scheme will need you to take action if you wish to utilize it. Effectively you will need to “opt in” to the scheme yourself – your accountant or agent cannot do this on your behalf.
The process to opt in will be an online one and access to the scheme is expected to be opened early in the new year and will be via the Government Gateway – so it’s not there yet.
The benefit will be that instead of paying the full amount of your VAT deferred payments at the end of March 2021 you will be able to pay this sum in up to 11 monthly instalments through the course of the year to March 2022. NO interest to the outstanding liability will be added.
For more information access HMRC guidance here
There are a range of VAT ideas that the Centurion VAT team have than could help you improve the cashflow in your businesses as well as create absolute VAT savings and reliefs – they will vary by the sector that you operate in. If this is something that you would like to understand more of please do get into with us email@example.com or contact your usual VAT link here in the team.
For the avoidance of doubt, the content recorded in this news article does not constitute formal advice and we do not guarantee the accuracy of any information provided at the time of reading. It is always recommended that you seek professional advice before acting on any of the news articles or information included.