Posted 03/06/2021 In Advice, Blog, News 2021-06-032021-06-03https://www.wrightvigar.co.uk/wp-content/uploads/2017/01/wright-vigar-logo.pngWright Vigarhttps://www.wrightvigar.co.uk/wp-content/uploads/2017/01/wright-vigar-logo.png200px200px 1 0 The deferral of VAT payments was one of the first tax easements implemented by the government to support those affected by COVID-19 and in September 2020 the deferral was extended giving business until 30 June 2021 to repay the VAT or arrange to pay it in instalments. With the deadline for payment of deferred VAT looming, here are the options available to avoid the 5% penalty: 1. pay the deferred VAT in full by 30 June 2021 HMRC have confirmed that no penalties or interest will be charged if the deferred VAT is paid in full by 30 June 2021. 2. opt into the new VAT deferral payment scheme (online by 21 June 2021) You have until 21 June 2021 to join the VAT deferral new payment scheme. This should be done via the online portal. However, if you are unable to use the online facility you can call the HMRC Coronavirus Helpline on 0800 024 1222 to join the scheme up until 30 June 2021. The new scheme allows you to pay the deferred VAT in 2-8 interest-free instalments with no penalties. However, it is important to note the first instalment is payable upon joining the scheme. Find out more 3. make an alternative arrangements to pay HMRC by 30 June 2021. Where you do not have the resources for the above options, you can contact HMRC by 30 June 2021 to agree a time to pay arrangement to avoid the 5% penalty. However, you need to be aware that interest will be charged when utilising this option. Find out more Recent PostsSuper Deduction for Capital Allowances ExplainedWright Vigar Announce New Associate DirectorWhat COVID-19 support schemes are continuing?