If you deferred VAT payments between 20 March and 30 June 2020 – and still have payments to make – you will be able to opt-in to a new VAT deferral payment scheme, when it opens on 23 February.
The new online scheme will be open between 23 February and 21 June 2021 and will allow you to:
- Pay your deferred VAT in equal instalments, interest free
- Chose the number of instalments from 2 to 11 (depending on when you join the scheme), with all payments completed by the end of March 2022
To be eligible to join, you must be up to date with your VAT returns, have a UK bank account, be able to pay by Direct Debit and pay the first instalment when you join.
You can still join the VAT deferral payment scheme, if you have a Time To Pay arrangement for other HMRC debts and outstanding tax.
It’s important to note that you do have to join the scheme, it’s not an automatic application, as other Coronavirus deferments have been. You will need a Government Gateway account (if don’t have one, you can create one) and to join the scheme yourself – agents are unable to do this on your behalf.
You can read more details about joining the new VAT deferral payment scheme and the monthly payments instalments here.
If you do have any questions about the new payment scheme, do contact us and our tax team will be happy to help you.