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The government announced that 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.
The VAT deferred was initially to be paid in full by the end of March 2021. Taxpayers can now opt to make 11 equal monthly instalments from March 2021 with the final payment due by the end of March 2022. Interest will not be charged on the amounts subject to extended repayment.
Taxpayers will need to opt-in to the scheme to extending the period for repayment of deferred VAT. Details of the opt-in procedures are expected early in 2021.
VAT returns must continue to be submitted and VAT payments due after 30 June must be paid in full on the normal due date.
Those taxpayers which have cancelled Direct Debits to HMRC to take advantage of the deferral will need to set up a new Direct Debit arrangement in time for the payments due after 30 June.
HMRC have confirmed that VAT refunds and reclaims will continue to be processed as normal and that repayment claims submitted after a deferral of VAT will not be offset against the deferred VAT. Repayments may however be offset against VAT debts due for periods prior to the deferral period in the normal way.
Amanda graduated from Brunel University, with a joint honours degree, achieving a BSC and BA degree in Leisure Management and Television and film studies. Amanda started her career in a customer service role before joining the hotel group Le Meridien as an Events coordinator, she was in the hotel industry for seven years and during her time won an award from a major international airline for her outstanding attitude and dedication to customer service, which she achieved while working for the Rezidor hotel group in the position of Airline Crew Manager. Amanda has over 20 years experience in customer relations and event management.
