Businesses that deferred VAT payments last year have one month left to join online to pay in monthly instalments under the VAT Deferral New Payment Scheme.
HM Revenue and Customs (HMRC) said the online portal for the payment scheme closes on June 21.
More than half a million businesses across the UK deferred £34 billion in VAT payments due between March and June 2020 under the VAT Payment Deferral Scheme.
Businesses had until March 31, 2021, to pay this deferred VAT or, if they could not afford to do so, they could go online from February 23 to pay by monthly instalments to spread the cost.
Jim Harra, HMRC’s chief executive, said: “[Businesses] should act now to avoid missing out on this opportunity to spread payment of their deferred VAT across monthly, interest-free, instalments.”
Businesses can spread their payments across up to eight equal monthly instalments, interest-free, if they join by June 21.
Businesses may be charged a 5% penalty and/or interest if they do not join up to the scheme online by June 21, or pay in full by June 30, or contact HMRC to make an arrangement to pay by June 30.
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