• Inchmead

HMRC to help further with VAT payment

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VAT

The Winter Economy Plan announced the VAT Deferral New Payment Scheme, which is applicable to any VAT vendors who deferred their VAT payment due between March and June 2020. Those vendors can now opt to make up to eleven small repayments of the deferred amount in the year to 31 March 2022 instead of 31 settling the VAT payment by March 2021.


Self-Assessment

Further extension of time: Vendors have been given additional time to pay for self-assessment. Taxpayers that delayed paying their second payment on account for 2019/20 can now settle the payment by 31 January 2022 rather than 31 January 2021 should they need it. The new extension applies to income tax payments due in January 2021, so will include the balancing payment for 2019/20 and the first POA for 2020/21.


To make use of the extension, taxpayers must apply online. If the tax due is not more than £30,000 in self-assessment liabilities, they can set up a payment plan online. If the tax due is more than £30,000, or require more time to pay, they have to phone HMRC.