In The News

Surcharge to be levied on deferred VAT – action required before June

Article Date: 08 March 2021

Last month we told you about the New Payment Scheme for any VAT liabilities that were deferred from the first half of last year.  Even if you don’t decide to opt into this scheme you must take some action before the end of June, as the Budget has introduced a 5% surcharge for any liabilities still outstanding at 1 July 2021.  This replaces any normal surcharges that would apply.

You have three options to avoid this surcharge:

  • Pay in full by the end of March 2021
  • Opt into the New Payment Scheme between March and June. The later you opt into the scheme, the fewer instalments you will be allowed to make and you must ensure you apply early enough in the month for the first payment to reach HMRC
  • Contact HMRC to make alternative arrangements for payment

The only option you don’t have is to do nothing, as a 5% surcharge on an average dealer’s VAT liability could prove costly.

If you would like advice on how you should proceed please get in touch with us at Michelle.Malone@ase-global.com

Or visit our LinkedIn page for more info:https://www.linkedin.com/company/ase-plc/

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