HMRC have released information of the penalty regime applicable to businesses that deferred the payment of VAT between March and June 2020.
As a result of the ongoing coronavirus pandemic, businesses were given the option of delaying the payment of VAT owed in this period, intended to assist those suffering from financial uncertainty. By 30th June 2021, businesses who deferred the payment of VAT were liable to either make full payment of this amount or have arranged payment terms with HMRC.
Any VAT not paid to HMRC by this date will be treated as debt and as such may be subject to penalties, due to be charged at 5% of the value of deferred VAT that remains unpaid.
If you have an outstanding VAT liability and require advice on your options with regards to repaying this amount due to HMRC, or you have received a penalty notice and are unsure how to proceed, please call our free VAT helpline for expert advice.
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