VAT return payments due to HM Revenue & Customs (HMRC) between 20 March and 30 June 2020 were allowed to be deferred until 31 March 2021, including any VAT due from later assessments or error corrections for the same period if the business requested their inclusion. The VAT due must be paid by 31 March 2021 unless the business signs up for the payment scheme by 19 March 2021 to secure the full 11-months to pay the VAT by instalments. HMRC has indicated that the portal to sign up for the instalments will be available from 23 February 2021.
HMRC have extended the sign-up period to 21 June 2021, although each month’s delay in signing up will reduce the payment term by one month to a maximum of eight months for doing so after 19 May. We understand there will be no interest or penalties if a business takes advantage of the extension to sign up for instalments.
We will continue to monitor the guidance issued by HMRC and provide you with further updates as the situation develops.
Would you like to know more?
If you would like to discuss any of the above guidance or have other queries about how you can make the right decisions for the future of your business and your income, please contact your usual Blick Rothenberg contact or Simon Newark, whose details are