Deferred VAT payments

Last year (2020), HMRC allowed the deferral of VAT payments that were due between 20th March and 30th June 2020. These payments were allowed to be deferred up to 31st March 2021, where it would assist businesses to maintain their cashflow.

HMRC are now reminding VAT registered businesses that this VAT does need to be paid by 31st March, if it has not already been paid.

For those businesses who are still struggling with cashflow, HMRC are creating an instalment scheme which will allow you to pay the deferred VAT in up to 11 monthly payments, interest free, beginning in March 2021. The scheme is not available yet, but business owners should give some consideration to their outstanding VAT liabilities.

If you require further information on this, please contact Matthews Hanton.

(EDIT 05/03/2021 - a small amount of extra information was made available during the Budget announcement of 03/03/2021. Please see our Budget update.)