Two pieces of additional information, the second will brief you of the procedure for dealing with the Vat deferral if you had opted at the time to take advantage by deferring the vat due for the quarter between March to June 2020.There are very generous provisions if you wish for more time to pay, please read this section it is important
Firstly, we have heard of more stories of extra layers of administration, courier fees, VAT problems and unexpected customs invoices for both importers and exporters. Some EU specialist online retailers have said they will no longer deliver to the UK because of the new tax changes from 1 January and vice versa.
VAT is now being collected at the point of sale rather than at the point of importation. This means that overseas retailers sending goods to the UK are expected to register for UK VAT and account for it to HMRC if the sale value is less than €150 (£135). Smaller EU businesses are now evaluating whether it is worth their while to export to the UK and the reverse is true.
For smaller UK businesses these changes are problematic, and they will take some time to fully understand and for simpler systems to emerge. UK businesses are innovative and adaptive and new solutions to smooth trade will emerge. It is a matter of taking a pragmatic and tentative approach just now
Below is a weekly roundup of Government supports for businesses and individuals in the UK, please talk to us, we are easy to get in touch if you need help in applying for Government support.
Pay VAT deferred due to coronavirus (COVID-19)
The guidance on how to pay VAT payments deferred between March and 30 June 2020 has been updated with an added section on ‘Correcting errors on your VAT returns relating to the VAT payments deferral scheme’, including information on how to defer any extra payments resulting error corrections and HMRC VAT assessments.
If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you can:
- pay the deferred VAT in full on or before 31 March 2021.
- opt into the VAT deferral new payment scheme when it launches in 2021.
- contact HMRC if you need more help to pay.
The online opt in process will be available in early 2021 and you must do this yourself, needless to say we will help you do that
Instead of paying the full amount by the end of March 2021, you can make up to 11 smaller monthly instalments, interest free. All instalments must be paid by the end of March 2022.
The scheme will allow you to:
- pay your deferred VAT in instalments without adding interest.
- select the number of instalments from 2 to 11 equal monthly payments.
To use this scheme you must:
- still have deferred VAT to pay.
- be up to date with your VAT returns.
- opt in before the end of March 2021.
- pay the first instalment when you opt in
If you opt into the scheme, you can still have a time to pay arrangement for other HMRC debts and outstanding tax.
Don’t forget there is plenty of very useful and helpful information on our website https://www.shaikhandcoaccountants.com/blog/
The information contained in this article is for general information purposes only and does not constitute advice, Whilst we endeavour to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability for a particular purpose. We recommend that professional advise should be taken from a suitably qualified expert before undertaking any action.