Did you take advantage of the VAT deferral scheme?

by Michael Blaken

If you were among the many businesses taking up the government’s VAT deferral scheme, introduced as part of the financial support for Covid, then the time to pay is looming.

Under the scheme, businesses were allowed to defer VAT payments due between 20 March and 30 June 2020. These outstanding VAT payments are due to be paid in full by 31 March 2021.

However, if you still have concerns about paying, the government has brought in a new payment scheme, which will enable you to spread the cost over 11 months and avoid a lump sum.

To take advantage of this, you need to opt in, and can do so by following the link here. You have to opt in by 21 June.

The scheme will allow you to:

• Pay the deferred VAT in instalments without adding interest
• Pay off the balance, split between 2 and 11 equal payments

If you need any help or advice with VAT or VAT accounting, and would like to talk to our team of Swindon accountants, please get in touch.