19.02.2021: VAT Deferral – Q1 2020 Payment Options
HMRC have issued further guidance on the options for payment for the deferred Q1 2020 VAT return liabilities, this deferral was automatic last year following COVID support for businesses.
If the deferral was taken up by business owners then the date for repayment is 31st March 2021 at the latest, however, HMRC are now offering payment terms for businesses that are unable to pay the amount due by 31st March 2021. To make this simpler they have set up an online portal to make the payment arrangement rather than having to call HMRC.
The online portal will be live on 23rd February 2021 and remain open until 21st June 2021, all VAT must be paid by 31st January 2022 so the sooner you sign up the more months the payment can be spread over.
Unfortunately, HMRC have blocked Agents from using the portal or setting up the arrangements on behalf of clients so if you cannot pay the liability before 31st March 2021 and wish to take up the new payment terms you must have a Government Gateway accounts for VAT to do this. If you do not have an account, then please sign up for one ASAP so there is no delay.
You will be allowed to set up a payment plan even if you already have a time to pay arrangement in place for another VAT quarter and you must make sure all returns are up to date and submitted before access the portal.
If you need longer to pay or have problems accessing the portal, then you can contact HMRC by phone on 0800 024 1222.
To access the portal please login to you Government Gateway account from 23rd February 2021 or search for VAT Deferral on the HMRC website at GOV.UK.
We await the budget on 3rd March 2021 with bated breath and will send an update as soon as we can after it is announced. The chancellor has stated that no further financial support announcements will be made until the budget, this is where he plans to set out his recovery plan for the UK economy. We should know prior to the budget what the government has planned for re-opening businesses, with the Prime Minster due to speak on 22nd February 2021.
HMRC have confirmed that the 4th SEISS grant will be announced on this date also.
Please do get in touch if you would like clarification on any of these points or have any further questions.
The DA Team