Repayment information for deferred VAT from 2020

If you deferred a VAT payment as a result of the Covid-19 crisis then you are not alone. Many UK businesses decided to defer their VAT payments during the period between March and June 2020, under one of the many government support packages offered to support businesses and freelancers at that time.

However, in a development since then, a new set of rules for payment of the deferred amount has been announced.

VAT spelled out, accompanied by an egg timer

What are my options?

Your options quite simply are to:

a)      pay your deferred VAT in full by March 21st

b)     Join the VAT deferral new payment scheme (an online service open between 23rd Feb and 21st June)

*Please note – if you do not do either of these two things, you are likely to incur a penalty.

Am I eligible to spread the amount of VAT I owe?

All businesses and individuals who deferred a VAT as a result of the COVID-19 crisis during that time are eligible to spread their payments under this new plan.

Further information

Cottons London  is a branch of Cottons Chartered Accountants. You can read more detail on this subject on the main Cottons website by clicking here.

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