UK authorities have clarified the penalty for failing to pay deferred VAT by the 30 June 2021 deadline.
HMRC previously explained that businesses that deferred VAT between 20 March 2020 and 30 June 2020 had two options to avoid penalties. Taxpayers could elect to pay their VAT in full by 31 March 2021. Alternatively, had a a choice join a new deferment scheme no later than 21 June 2021.
HMRC now says that if you failed to meet either of those conditions, you need to contact the HMRC COVID-19 helpline to make further arrangements.
The tax authority warns that if you do not pay the outstanding VAT full or make an arrangement to pay by 30 June 2021 you could be charged a 5% penalty or interest.
Don’t hesitate to get in touch with Vatglobal for expert guidance on how to optimise your VAT compliance and avoid penalties.
Source VATglobal
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