VAT deadline imminent
If a business has used the VAT deferral scheme in 2020 they have less than two weeks to make their intentions for repayment known. What do they need to do and what are the consequences if they miss the cut-off?
The payments due under the deferred VAT scheme were strictly due by 31 March 2021. However, the government introduced its “VAT deferral new payment scheme” as a way to allow businesses to spread the cost over up to eleven instalments instead. Any business wanting to use the new scheme must enrol by 21 June. At this stage, the maximum number of instalments that can be used is eight.
If a business has deferred VAT and misses this deadline, it must pay in full by 30 June 2021 or a penalty of 5% of the outstanding amount may be applied. Any business struggling to make payment should contact the Payment Support Service on 0300 200 3835 before 30 June to try to agree an alternative arrangement.
Related Topics
-
Delay salary to save tax
As a company owner manager, you decide when to take income from your business. If that’s your only source of income, tax planning is relatively simple but it’s trickier if you have other sources. What’s the best strategy to improve tax efficiency?
-
Loan written off: are you in HMRC’s crosshairs?
HMRC is writing to directors that took a loan from their company that was later written off or released. What should you do if you receive a letter?
-
Cutting the cost of a company car
You want to help your young son replace the ancient car he currently drives. The plan is for your company to buy it but for the running costs to be met by your son. That’s fine with him but is there a more tax and cost-effective alternative?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.