- Shepherd Partnership
VAT deferred due to COVID-19
Taxpayers who deferred VAT liabilities due between 20 March 2020 and 30 June 2020 as a result of COVID-19 had the choice of paying their deferred VAT in full by 31 March 2021, joining the deferral scheme by 21 June 2021 to pay by instalments or making an arrangement to pay their deferred VAT by 30 June 2021.
If taxpayers still have any of this deferred VAT still outstanding may be charged a 5% penalty or interest. HMRC is urging taxpayers who are struggling to pay deferred VAT to make contact with them as soon as possible with a view to agreeing a payment arrangement to settle the tax.