HM Revenue and Customs (HMRC) reported that 150,000 UK businesses have not yet made arrangements to pay back deferred VAT payments, and therefore owe the department £2.7 billion.
As of 30 June 2021, nine per cent of the total VAT deferred by businesses during the covid-19 pandemic were unaccounted for, reveals information released by HMRC through a Freedom of Information request (FOI).
These figures also show that around 590,000 companies took advantage of the deferred VAT scheme and postponed these payments to the value of £33.5 billion between March and June 2020.
Out of the total figure, £17.8 billion is back with HMRC, and £13 billion is due through these monthly instalments, which the tax authority helps to arrange.
Companies that chose to defer their VAT payments had until 31 March 2021 to pay in full or 30 June 2021 to arrange to pay through the VAT Deferral New Payment Scheme – which offers alternative ways to pay the funds.
This scheme allows firms to spread their VAT payments across a maximum of eight equal monthly instalments without paying any interest. However, the online portal for this closed on 21 June 2021.
If you are yet to pay back your deferred VAT payments, it is vital to do so as soon as possible. Contact our experts today if you need any advice or help with the process.