VAT deferred due to coronavirus

Information about paying deferred VAT in full or making an arrangement to pay by 30 June 2021 has been added to the webpage below. If you have not arranged a time to pay plan or have not repaid any VAT deferred then you should contact coronavirus (COVID-19) helpline to discuss your situation.

You may be charged a 5% penalty or interest if you do not pay in full or make an arrangement to pay by 30 June 2021.

See: Pay VAT deferred due to coronavirus (COVID-19) - https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

18th June 2021 – Hillmans Weekly Update

Below I have summarised all the main tax related updates we have seen this week.

·         VAT Deferral Reminder– join online by 21 June
·         Commercial Eviction Ban Extended to March 2022
·         New tool launched to support organisations achieve Cyber Essentials certification
·         Car Benefit Reduced Where Unavailable

If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.

I hope you have a great weekend.

Stay safe and well.

Cheers,

Steve

Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100

VAT Deferral Reminder– join online by 21 June

The VAT deferral new payment scheme is open for all businesses who deferred paying VAT due between 20 March and 30 June 2020 and were unable to pay in full by 31 March 2021.

21 June is the last day you can join this scheme. If you join by this date you can apply to spread these payments across up to eight instalments.

You can join online here:  https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

If you have deferred paying VAT, you may be charged a 5% penalty and/or interest if you do not join the VAT deferral new payment scheme by the deadline of 21 June, pay in full by 30 June, or get in touch with HMRC to make an alternative arrangement to pay by 30 June 2021.

See: One month left to join VAT Deferral New Payment Scheme - https://www.gov.uk/government/news/one-month-left-to-join-vat-deferral-new-payment-scheme

4th June 2021 – Hillmans Weekly Update

Below I have summarised all the main tax related updates we have seen this week.

• Self-Employment Income Support Scheme (SEISS) Fifth Grant Update
• Not all benefits need to be reported on form P11D
• The cost of Covid-19 and how this will affect your business
• VAT deferral monthly payment scheme closing soon

If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.

I hope you have a great weekend.

Stay safe and well.

Cheers,

Steve

Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100

VAT deferral monthly payment scheme closing soon

The VAT deferral new payment scheme is open for all businesses that deferred VAT due between 20 March 2020 and 30 June 2020 and were unable to pay in full by 31 March 2021.

Businesses can spread these payments over several months – businesses that join by 21 June 2021 will still be able to benefit from up to 8 monthly instalments.

Businesses can join the easy-to-use scheme quickly and simply without needing to call HMRC.

Before joining, businesses must:

• have their VAT registration number
• create their own Government Gateway account (if they do not already have one)
• submit any outstanding VAT returns from the last 4 years – otherwise they will not be able to join the scheme
• correct errors on their VAT returns as soon as possible
• make sure they know how much is owed, including the amount originally deferred and how much they may have already paid

Businesses may be charged a 5% penalty and interest if they do not either pay in full, sign up to the scheme online by 21 June 2021, or get in touch with HMRC to make an arrangement to pay by 30 June 2021.

For more information see:  VAT Deferral New Payment Scheme - https://www.gov.uk/government/news/vat-deferral-new-payment-scheme-online-service-opens

30th April 2021 – Hillmans Weekly Update

Below I have summarised all the main tax related updates we have seen this week.

• Business News Update
• No Employers NICs for a year if you hire ex-military staff
• Fourth round of SEISS grants have now opened up to the public
• Paying back VAT deferred due to coronavirus

If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.

I hope you have a good bank holiday weekend.

Stay safe and well.

Cheers,

Steve

Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100

Paying back VAT deferred due to coronavirus

Information has been added to the HMRC website on penalties or interest that may be charged if you do not pay in full, or make an arrangement to pay, VAT payments deferred due to coronavirus, and how you may still be able to avoid these charges.

Below are details on how to pay VAT payments deferred between 20 March and 30 June 2020. You can pay now or join the VAT deferral new payment scheme.

If you deferred VAT payments due between 20 March 2020 and 30 June 2020 you can:

• pay the deferred VAT in full now
• join the VAT deferral new payment scheme – the online service is open between 23 February 2021 and 21 June 2021
• contact HMRC on 0800 024 1222 by 30 June 2021 if you need extra help to pay

You may be charged a 5% penalty or interest if you do not pay in full or make an arrangement to pay by 30 June 2021.

Pay your deferred VAT in full

If you were unable to pay in full by 31 March 2021, you may still be able to avoid being charged penalties or interest by either:

• joining the new payment scheme by 21 June 2021
• paying your deferred VAT in full by 30 June 2021

Join the VAT deferral new payment scheme

The VAT deferral new payment scheme is open from 23 February 2021 up to and including 21 June 2021.

The new scheme lets you:

• pay your deferred VAT in equal instalments, interest free
• choose the number of instalments, from 2 to 11 (depending on when you join)

Instalment options available to you

When you decide to join the scheme will determine the maximum number of instalments that are available to you.

The following sets out the monthly joining deadlines (to allow for Direct Debit processing) and the corresponding number of maximum instalments (including the first payment):

If you join by         Number of instalments available to you

19 March 2021 11
21 April 2021         10
19 May 2021         9
21 June 2021         8

How to join

Before joining, you must:

• have your VAT registration number
• create your own Government Gateway account (if you do not already have one)
• submit any outstanding VAT returns from the last 4 years – otherwise you’ll not be able to join the scheme
• correct errors on your VAT returns as soon as possible
• make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid

To use the online service, you must:

• join the scheme yourself, your agent cannot do this for you
• still have deferred VAT to pay
• be up to date with your VAT returns
• join by 21 June 2021
• pay the first instalment when you join
• pay your instalments by Direct Debit (if you want to use the scheme but cannot pay by Direct Debit, there’s an alternative entry route for you)

Join the scheme now
See: Pay VAT deferred due to coronavirus (COVID-19) - GOV.UK (www.gov.uk)

26th March 2021 – Hillmans Weekly Update

Below I have summarised all the main tax related updates we have seen this week.

• Pay 2019/20 Self-Assessment Tax Before 1 April 2021 To Avoid 5% Surcharge Penalty
• Grants for Electric Car Buyers Cut
• Bounce Back Loan Application Deadline 31st March 2021
• VAT Deferral – Apply Now to Spread your Payments
• Additional Restrictions Grant

If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.

I hope you have a good weekend.

Stay safe and well.

Cheers,

Steve

Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100

VAT Deferral – Apply Now to Spread your Payments

The VAT deferral new payment scheme is open for all businesses who deferred VAT due between 20 March and 30 June 2020 and still have payments to make, or who are unable to pay in full by 31 March 2021. This includes those on Payment on Account and Annual Accounting schemes.

Apply now to spread these payments over a number of months – the later you join the fewer instalments are available to you. Join from 19 March 2021 to benefit from the maximum number of 11 instalments.

You can join the scheme online without the need to call HMRC. To find out more information, including the things you need to do before joining, go to GOV.UK and search 'VAT deferral'.

https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

19th February 2021 – Hillmans Weekly Update

Below I have summarised all the main tax related updates we have seen this week.

• Help to Buy scheme extended
• Pay VAT deferred due to COVID-19
• Bounce back loan borrowers can delay repayments by extra six months
• Film & TV Production Restart Scheme

If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.

I hope you have a good weekend.

Stay safe and well.

Cheers,

Steve

Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100

Pay VAT deferred due to COVID-19

Information has been added by HMRC about how to join the VAT deferral new payment scheme – with the online service being open between 23 February and 21 June 2021.

If you deferred VAT payments due between 20 March and 30 June 2020, and still have payments to make, you can:

• pay the deferred VAT in full, on or before 31 March 2021.
• join the VAT deferral new payment scheme – the online service is open between 23 February and 21 June 2021.
• contact HMRC on Telephone: 0800 024 1222 by 30 June if you need extra help to pay.

You may be charged interest or a penalty if you do not:

• pay the deferred VAT in full by 31 March 2021.
• opt into the new payment scheme by 21 June 2021.
• agree extra help to pay with HMRC by 30 June 2021.

See: https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

29th January 2021 – Hillmans Weekly Update

Below I have summarised all the main tax related updates we have seen this week.

• Business News Update
• No Self-Assessment late filing penalty for those who file online by 28 February
• Deadline for claiming third SEISS grant - 29th January 2021
• Pay VAT deferred due to coronavirus (COVID-19)
• Making Tax Digital for VAT

If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.

I hope you have a good weekend.

Stay safe and well.

Cheers,

Steve

Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100

Pay VAT deferred due to coronavirus (COVID-19)

The guidance on how to pay VAT payments deferred between 20 March and 30 June 2020 has been updated with an added section on ‘Correcting errors on your VAT returns relating to the VAT payments deferral scheme’, including information on how to defer any extra payments resulting error corrections and HMRC VAT assessments.

If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you can:

• pay the deferred VAT in full on or before 31 March 2021.
• opt into the VAT deferral new payment scheme when it launches in 2021.
• contact HMRC if you need more help to pay.

The online opt in process will be available in early 2021 and you must do this yourself.

Instead of paying the full amount by the end of March 2021, you can make up to 11 smaller monthly instalments, interest free. All instalments must be paid by the end of March 2022.

The scheme will allow you to:

• pay your deferred VAT in instalments without adding interest.
• select the number of instalments from 2 to 11 equal monthly payments.

To use this scheme you must:

• still have deferred VAT to pay.
• be up to date with your VAT returns.
• opt in before the end of March 2021.
• pay the first instalment when you opt in

If you opt into the scheme, you can still have a time to pay arrangement for other HMRC debts and outstanding tax.

See: https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

4th December 2020 – Hillmans Weekly Update

4th December 2020 – Hillmans Weekly Update

Below I have summarised all the main tax related updates we have seen this week.

• New ‘Significantly Reduced Profits’ Test for Third SEISS Grant
• Pay VAT Deferred Due to COVID-19
• Christmas Gifts of up to £50 to Employees
• How About a Virtual Christmas Party?

If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.

I hope you have a good weekend.

Stay safe and well. 

Kind regards,

Steve

Steven Hillman BSc (Hons) ACA

Chartered Accountant

Tel: 01934 444100

https://www.hillmans.co.uk/covid-19-updates 

Pay VAT Deferred Due to COVID-19

HMRC has issued guidance on paying deferred VAT. 

If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you can:

• pay the deferred VAT in full on or before 31 March 2021

• opt into the VAT deferral new payment scheme when it launches in 2021

• contact HMRC if you need more help to pay

If you want to opt into the new payment scheme:

You cannot opt in yet. The online opt in process will be available in early 2021. You must opt in yourself. Your agent cannot do this for you.

Instead of paying the full amount by the end of March 2021, you can make up to 11 smaller monthly instalments, interest free. All instalments must be paid by the end of March 2022.

The scheme will allow you to:

• pay your deferred VAT in instalments without adding interest

• select the number of instalments from 2 to 11 equal monthly payments

To use this scheme you must:

• still have deferred VAT to pay

• be up to date with your VAT returns

• be able to pay the deferred VAT by Direct Debit

If you opt into the scheme, you can still have a time to pay arrangement for other HMRC debts and outstanding tax.

Get ready to opt into the new payment scheme:

Before opting in you must:

• create your own Government Gateway account if you don’t already have one

• submit any outstanding VAT returns from the last 4 years. You will not be able to join the scheme if you have not done so

• correct errors on your VAT returns as soon as possible. Corrections received after 31 December 2020 may not show in your deferred VAT balance

• make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid

You should also:

• pay what you can as soon as possible to allow HMRC to show the correct deferred VAT balance

• consider the number of equal instalments you will need, from 2 to 11 months

Please talk to us about helping you with your options.

See: https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

Deferral of VAT Payments due to Coronavirus

The Chancellor has announced that businesses who deferred VAT due from 20 March to 30 June 2020 will now have the option to pay in smaller payments over a longer period.

Instead of paying the full amount by the end of March 2021, HMRC have confirmed businesses can make smaller payments up to the end of March 2022, interest free.

You will need to opt-in to the scheme, and for those who do, this means that your VAT liabilities due between 20 March and 30 June 2020 do not need to be paid in full until the end of March 2022.

Those that can pay their deferred VAT can do so by 31 March 2021.

If you are still unable to pay the VAT due and need more time, you can contact HMRC by phoning: 0300 200 3835.

More information on the scheme will be available in the coming months and we will keep you up to date when changes occur.

See: https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

VAT registered businesses advised to reinstate VAT direct debits

The VAT payment deferral comes to an end on the 30th June. The deferral gives businesses the option to defer VAT payments falling due between the 20th March and 30th June until the 31st March 2021.

Businesses who are registered for VAT have been advised to reinstate their direct debit mandate, to ensure any VAT payments becoming due from the 1st July 2020 onwards are not late. The direct debit can be setup via the online tax account.

The Institute of Chartered Accountants in England and Wales (ICAEW) said: 'HMRC has confirmed that it will not collect the outstanding balance of deferred VAT when the direct debit mandate is reinstated. HMRC has made the necessary systems change to avoid this happening for businesses in Making Tax Digital for VAT.