VAT registered businesses were able to defer VAT payments, due to the arrival of Covid-19 for the periods from 20 March 2020 to 30 June 2020. Businesses that have not repaid this VAT are required to take action by 21 June 2021 to avoid a penalty.
A 5% penalty will be charged on any outstanding deferred VAT unless:
- Businesses have opted into the repayment scheme by 21 June 2021.
- Business have contacted HMRC to arrange an alternative payment arrangement by 30 June 2021.
- Any outstanding tax has been settled.
Useful guides on this topic
COVID-19: VAT deferred payments
External links
HMRC: deferral of VAT payments