In March, the Government announced a VAT payment holiday to provide businesses with the opportunity to defer any VAT payments that were due between 20 March 2020 and 30 June 2020.
As per the Government’s original guidance, any deferred VAT liabilities would be payable at the end of the 2020/21 financial year (31 March 2021).
However, in light of ongoing COVID-19 challenges, the Chancellor announced in his recent Winter Economy Plan that businesses would be given the option of paying back any deferred VAT in smaller payments over a longer period.
Instead of having to repay the full amount by March 2021, businesses are now able to make smaller interest-free payments during the 2021-22 financial year, providing the VAT due is cleared by 31 March 2022.
Businesses must opt-in to utilise this new scheme, and any businesses who are able to pay their deferred VAT by 31 March 2021 can still do this.
More information is expected to be released in the coming months.
For further advice, please contact your usual PM+M adviser or get in touch with us at firstname.lastname@example.org, and we’ll direct you to the best person.
This information is correct as of 12 October 2020. This blog is for general guidance only. Recipients should not act upon any of the information provided without seeking specific professional advice tailored to your circumstances, requirements or needs. Please contact PM+M before making any decisions based on any matters relating to this blog.