HMRC issues reminder about VAT penalty cut-off date
HMRC has warned businesses that took advantage of the coronavirus VAT deferral scheme last year that a key penalty deadline is looming. What’s the story?
At the start of the first lockdown, HMRC announced that VAT payments due between 20 March 2020 and 30 June 2020 could be deferred. The amounts deferred needed to be paid back by 31 March 2021. HMRC has now issued a reminder that if the deferred amounts are not made good by the end of June, a 5% penalty will apply as well as interest. Any business that has not already made good the amounts should make sure they do so by that date.
Alternatively, businesses that are struggling to pay the amount in one instalment can still opt into the new payment scheme here until 21 July 2021, and spread the repayment over the period to 31 March 2022. The number of instalments available will depend when the scheme is joined:
|
Join before |
Number of instalments available |
|
19 May 2021 |
9 |
|
21 June 2021 |
8 |
Related Topics
-
Tax relief for lending to your company
You can usually claim tax relief for money you borrow personally to lend to your company. It sounds straightforward but there are in fact a number of restrictions to trip you up. How do you secure the tax relief?
-
Who can't yet sign up for MTD IT?
Making Tax Digital for Income Tax (MTD IT) becomes mandatory from April 2026 for sole traders and landlords with qualifying income over £50,000. However, HMRC’s current guidance makes clear that not everyone can sign up yet. If you are preparing early, are you actually eligible?
-
Pay self-assessment tax