Businesses who deferred VAT due from 20 March to 30 June 2020 will now have the option to pay in smaller payments over a longer period – business can now make up to 11 smaller monthly payments, interest free as opposed to paying the full amount by the end of March 2021.
All instalments must be paid by the end of March 2022.
You will need to opt into the scheme, which means that their deferred VAT liabilities do not need to be paid by the end of March 2021.
As a part of this scheme, you will be required to set up a Direct Debit as a part of the digital opt-in process, which needs to be done by the authorised bank account holder.
HMRC is unable to provide an agent service for this scheme.
To use this scheme you must:
- Still have deferred VAT to pay
- Be up to date with your VAT returns
- Be able to pay the deferred VAT by Direct Debit
Knowing how to take control of your business finances to maximise profits can be difficult, especially with the current climate. Knowing the common mistakes to avoid can be difficult and can leave you feeling unsure.
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