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Penalty rates for deferred VAT scheme set at 5%

HMRC has confirmed that companies will be liable for a 5% penalty or interest if they do not pay in full or make an arrangement to pay deferred VAT by 30 June 2021

When the Coronavirus pandemic was first announced the government offered a three-month deferral of VAT payments for the first tax quarter of 2020, and these payments for outstanding VAT are now due.

For businesses that deferred VAT payments due between 20 March 2020 and 30 June 2020 can either pay the deferred VAT in full now alternatively join the VAT deferral new payment scheme. The online VAT deferral notification service is available until 21 June 2021 follow the link below for full details.

The VAT deferral payment scheme allows taxpayers to schedule payments on a monthly basis. The scheme lets you pay your deferred VAT in equal instalments, interest free; and choose the number of instalments by direct debit, from 2 to 11 (depending on when you join).

Visit the Government website for further information


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