HMRC issues reminder about VAT penalty cut-off date
HMRC has warned businesses that took advantage of the coronavirus VAT deferral scheme last year that a key penalty deadline is looming. What’s the story?
At the start of the first lockdown, HMRC announced that VAT payments due between 20 March 2020 and 30 June 2020 could be deferred. The amounts deferred needed to be paid back by 31 March 2021. HMRC has now issued a reminder that if the deferred amounts are not made good by the end of June, a 5% penalty will apply as well as interest. Any business that has not already made good the amounts should make sure they do so by that date.
Alternatively, businesses that are struggling to pay the amount in one instalment can still opt into the new payment scheme here until 21 July 2021, and spread the repayment over the period to 31 March 2022. The number of instalments available will depend when the scheme is joined:
|
Join before |
Number of instalments available |
|
19 May 2021 |
9 |
|
21 June 2021 |
8 |
Related Topics
-
Why is HMRC checking PVA more often?
Your business imports goods and accounts for VAT by applying postponed VAT accounting (PVA) on its returns. HMRC is scrutinising returns and issuing large assessments in some cases. What can you do to reduce the risk of getting it wrong?
-
HMRC text or scam? Check before you act
HMRC is contacting some taxpayers by text this week about overdue Self Assessment liabilities and is also sending updates about VAT registration applications. At the same time, it has expanded its guidance on spotting fake HMRC messages on social media. How can you tell whether a message is genuine?
-
Received a P800? Check how HMRC has used your allowances
Some HMRC P800 tax calculations can produce too much tax where a taxpayer has several different types of income and allowances are not allocated in the most favourable way. People with employment or pension income alongside savings, dividends or other income are particularly at risk here. Could HMRC be charging you too much?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.