The Government has just update it’s guidance on paying VAT bills that were deferred due to the pandemic between 20th March and 20th June 2020. Clients have three options:
- Pay by the 31st of March
- Opt into the new deferral scheme when it goes live and pay in up to 11 smaller payments
- Talk to HMRC about time to pay
Clients with cash flow problems from Corona may well opt for the second option in which case they need to get ready. In order to apply for this they will need:
- A Government Gateway login with access to their VAT account. Agents (ie accountants) can’t apply for this on behalf of clients.
- All VAT returns up to date
- The amount they have deferred
So even though the scheme is not open yet now is the time to prepare. If you need any help getting your VAT affairs up to date please get in contact.
Full details of the scheme are here:
https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
