Commentary

New payment scheme in respect of deferred VAT

Budget Day 2021
Budget Day 2021 | Commentary

New payment scheme in respect of deferred VAT

Budget Day 2021 | Commentary

New payment scheme in respect of deferred VAT

As a result of the COVID-19 pandemic, businesses were allowed to defer VAT liabilities falling due between 20 March 2020 and 30 June 2020 until 31 March 2021. It was subsequently announced (on 24 September 2020) that businesses would be able to pay that deferred VAT in up to 11 monthly interest-free instalments. This measure will be legislated for in FA 2021.

The legislation will also provide for a penalty of 5% of the outstanding VAT if a business has not, by 30 June 2021:

  1.  

    •     paid its liability under the deferral

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial