A ‘New Payment Scheme’ for VAT deferral will offer businesses that deferred VAT due in March to June 2020 the option to spread their payments over the financial year 2021/22 in 11 equal instalments. All businesses that took advantage of the VAT deferral are eligible and can use the scheme. However, they will need to opt in using a process HMRC will launch in “early 2021”.
More information can be found here.
NUNN HAYWARD’S PLANNING ADVICE:
Both of these support measures are welcomed as they offer the self-employed and VAT registered businesses fairly immediate cash-flow relief in the next few months but PLEASE NOTE HMRC are not cancelling your VAT and self-assessment tax payments, both are being deferred to a later date. You must ensure that you make allowance for this so that you can meet the payments when they fall due at the later date.
The information that we have provided is for general purposes only and therefore does not constitute professional advice. Appropriate professional advice should be sought for individual circumstances before any further action is taken.