The government put in place a scheme that allowed businesses to defer VAT payments that were due between 20th March 2020 and 30th June 2020.
Businesses that took this option were able to either:
Pay in Full by 31st March 2021
Join the online VAT deferral payment scheme by 21 June 2021 to spread payments of deferred VAT over smaller, interest free instalments
Contact HMRC to make an arrangement to pay by 30th June 2021
HMRC have released a notice to say that they will support any taxpayer in financial distress as a result of COVID 19. Businesses are asked to get in contact as soon as possible if you have deferred VAT payments to make.
There is a 5% penalty charge and interest on outstanding monies – the message is act now to avoid a penalty