Many organisations have taken advantage of the COVID-19 VAT payment deferral scheme which allowed them to defer VAT payments falling due between 20 March 2020 and 30 June 2020 until 31 March 2021. HMRC has recently issued guidance on the process of extending the deferral by a year to the end of March 2022.
If an organisation has deferred VAT between 20 March 2020 and 30 June 2020 and still has payments to make, it has three options:
Instead of paying the full amount by the end of March 2021, up to 11 smaller monthly instalments can be made, interest free. All instalments must be paid by the end of March 2022.
The scheme will allow organisations to:
To use this scheme, organisations must:
Before opting in organisations must:
If organisations have difficulties in making these VAT payments, they should be able to agree a ’time to pay’ arrangement with HMRC. Crowe’s VAT and Custom’s Duty team can support you in applying for this.