Delayed your June 20 VAT? | new HMRC repayment scheme
If you (like most salons) deferred your VAT payment between 20 March and 30 June 2020 under the coronavirus VAT scheme, you now have a new choice on how to repay it. Previously it was simply due by the end of March 2021, but now you have a second option:
- Pay now or,
- Opt in to the new VAT deferral payment scheme
If you want to opt in to the new payment scheme
This new scheme has just been announced by HMRC.
So instead of paying the full amount you owe 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.
To do this however, you must be up to date with your other VAT returns (having submitted and paid all other ones due).
You cannot opt in just yet – the online ‘opt in’ process will not be available until early 2021 but that’s not too far away now.
In the meantime, if you are repaying this VAT, consider using this scheme instead.
You have to opt in yourself as HMRC have said that HMRC agents (which Salonfrog is) cannot do this for you. No idea why this is.
However, when the opt in is available, we’ll see what you have to do and provide you detailed instructions.