The deadline to pay deferred VAT or arrange a payment plan is \u201cfast approaching\u201d, the Institute of Chartered Accountants in England and Wales (ICAEW) has warned.<\/p>\n
Businesses who deferred VAT in the wake of the coronavirus pandemic must take action before 30 June 2021 or risk penalties.<\/p>\n
If your company has outstanding VAT liabilities, here\u2019s what you need to know.<\/p>\n
What is the VAT deferral scheme?<\/strong><\/p>\n VAT-registered businesses could defer VAT payments between 20 March and 30 June to support cash flow during the height of the coronavirus pandemic.<\/p>\n The resulting liability was initially deferred until 31 March 2021, but a further deferral was announced in September 2020 giving businesses until 30 June 2021 to repay.<\/p>\n What are my options?<\/strong><\/p>\n Businesses have two options. Pay their deferred VAT liability in full by 30 June 2021 or arrange a payment plan by the same date.<\/p>\n The new online VAT Deferral New Payment Scheme, which launched in February, enables businesses to spread out their liabilities over eight to 10 monthly interest-free instalments, depending on when they apply.<\/p>\n