Many small businesses took advantage of the option to defer VAT payments that originally fell due between 20 March and 30 June 2020.
On 24 September 2020, the Chancellor announced that those businesses will now have the option to pay the outstanding VAT in smaller amounts over a longer period.
Instead of paying the full deferred amount due by 31 March 2021, businesses can opt to spread the repayment into smaller payments up to 31 March 2022, interest-free.
Businesses that will still be unable to pay over this new timeframe may contact HMRC on 0300 200 3835 to arrange “time to pay”.
More information on the extended payment arrangements will be published in the coming months.
For further assistance, contact us today.