HMRC issues reminder about VAT penalty cut-off date
HMRC has warned businesses that took advantage of the coronavirus VAT deferral scheme last year that a key penalty deadline is looming. What’s the story?
At the start of the first lockdown, HMRC announced that VAT payments due between 20 March 2020 and 30 June 2020 could be deferred. The amounts deferred needed to be paid back by 31 March 2021. HMRC has now issued a reminder that if the deferred amounts are not made good by the end of June, a 5% penalty will apply as well as interest. Any business that has not already made good the amounts should make sure they do so by that date.
Alternatively, businesses that are struggling to pay the amount in one instalment can still opt into the new payment scheme here until 21 July 2021, and spread the repayment over the period to 31 March 2022. The number of instalments available will depend when the scheme is joined:
|
Join before |
Number of instalments available |
|
19 May 2021 |
9 |
|
21 June 2021 |
8 |
Related Topics
-
Elevate your HMRC complaint
If complaining to HMRC gets you nowhere you can ask the Adjudicator’s Office (AO) to review your case. The process can be trickier than it ought to be. What problems might you encounter and how can you avoid them?
-
HMRC targets landlords using third-party data
HMRC has confirmed that it is using information received from third parties to identify landlords who may not have declared all of their rental income. The latest compliance campaign highlights the department's increasing use of data matching to tackle errors and omissions. What should landlords do?
-
MONTHLY FOCUS: TAX CONSIDERATIONS FOR BUY-TO-LET PROPERTY
Running a letting business is a very popular option. However, there have been a number of changes over the way that profits from property businesses are taxed in recent years. In this month's focus, we consider the tax considerations you need to keep in mind when buying property to let, and look at how the rental profits are calculated for tax purposes.
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.