In order to support businesses which were adapting to the changes caused by the Covid-19 pandemic, the UK Government allowed businesses to defer VAT payments to 31 March 2021 if the scheduled VAT payment fell due between 20 March 2020 - 30 June 2020. This provided businesses with temporary working capital in the absence of a regular source of income.
Those who could not pay the VAT by the deadline were invited to join the VAT Deferral New Payment Scheme which spread repayments over 11 instalments. Those companies which have not been able to repay the deferred VAT, or those which deferred payment with the intention to defraud HMRC, can expect further action and VAT Assessments to be issued against them.
HMRC is able to bring criminal and/or civil proceedings against individuals who have not paid VAT. If you are concerned about an HMRC VAT investigation into you or your business, please get in touch with us.