Muras Matters: Payment of VAT Deferred Due To Coronavirus (COVID-19)

As part of the Government’s Coronavirus support package businesses were able to defer their VAT liabilities between 20 March and 30 June 2020 until March 2021. In September 2020, it was then announced that further breathing space would be available through the New Payment Scheme, which provided the option to pay the deferred VAT in smaller instalments. Rather than paying a lump sum in full at the end of March 2021, businesses would be able to make up to 11 smaller interest-free payments during the 2021-22 financial year.

The option to sign up to the New Payment Scheme closed on 21 June 2021 so for those businesses who were not able to pay their deferred VAT liability in full by 31 March 2021 or were unable to join the online payment scheme by 21 June 2021 then they must contact HM Revenue & Customs (HMRC) by 30 June 2021 in order to either pay the deferred VAT in full or to make an arrangement to pay.

Failure to contact HMRC in order to either pay the outstanding deferred VAT in full or else make an arrangement to pay the balance due may lead to a penalty or interest. HMRC can be contacted on the coronavirus (COVID-19) helpline.

Before contacting HMRC, you will need: 

  • your VAT registration number
  • to have submitted any outstanding VAT returns – otherwise you will not be able to ask for an arrangement to pay
  • to know how much you owe – including the amount you originally deferred and how much you may have already paid.

Should you have any questions regarding the deferral of VAT payments or have any other query relating to the current situation, please speak to your usual contact at the firm.

Our Current working arrangement – We remain ‘Open for business’

Our staff have returned to office based working on a rota basis, each attending two days a week, whilst continuing to work from home at other times. They can still be contacted in the usual way either via email or by calling the office number where reception will divert your call to the appropriate staff member.

To see our other news items please visit our Muras Baker Jones – Blog.