Extension to deferment of VAT due

On 24 September 2020 the Chancellor announced and extension to scheme allowing for the deferment of VAT for businesses affected by coronavirus.  Businesses that took advantage of the arrangements to defer VAT payments due between 20 March and 30 June 2020 until 31 March 2021, will have the option to pay the outstanding amounts in smaller payments over a longer period.  Instead of paying the full amount by 31 March 2021, it will be possible to make smaller payments up to 31 March 2022, interest free. Businesses will need to opt-in to the scheme, and HMRC will issue guidance on the mechanics of the scheme in the coming months.

If you require further information about the impact of this scheme please speak to your usual Whiting & Partners contact.

Disclaimer - All information in this post was correct at time of writing.