The Government’s VAT Deferral Scheme which has enabled businesses with VAT liabilities incurred between 20th March and 30th June 2020 to make these payments later, is about to close.
If you still have outstanding VAT liabilities from the first period of lockdown last year, and wish to pay over a period of time, you must join the scheme by 21June otherwise, you will have to pay in full by 30 June or face a 5% penalty.
If you have not already done so, our advice is for you to sign up to the scheme and make the first instalment payment.
If for whatever reason, you have been unable to sign up to the online service for deferring a VAT payment, you should ring the HMRC coronavirus helpline on 0800 0241222 to join the scheme by telephone.
If after making arrangements, you are still unable to pay these liabilities then please contact HMRC on 0300 200 3835.
We appreciate that there are issues in relation to contacting HMRC at the present time. In our own case, when trying to sign up online, we have been told that we are not eligible as we do not owe any deferred VAT. We know that we do as we have other communications confirming this.
We have put in an appeal to HMRC but are not confident that they have the means of responding before the deadline later this month.
Therefore, if you have any issues relating to deferred VAT, please act now.