VAT Deferral payment scheme- is now open
Many VAT registered businesses were given the option to defer their VAT payments which were due to be paid between 20 March 2020 and 30 June 2020. The deferral payment date had been extended to 31st March 2021.
HMRC have now given VAT registered businesses the option to defer this payment for even longer and have opened the new deferral payment scheme.
Vat registered businesses that did have a VAT liability due for payment between 20th March 2020 and 30 June 2020 now have 2 options:
- Pay the deferred VAT in full, on or before 31st March 2021
- Join the New VAT deferral scheme
The new deferral scheme allows you to pay your deferred VAT in equal instalments, interest free.
You can choose the number of instalments, from 2 to 11 (depending on when you join the scheme) The earlier the join, the longer you may have.
How to join the scheme
You must have a government gateway account for your businesses. If you do not currently have this, you will need to create one.
You must not have any outstanding VAT returns due to be filed from the last 4 years- if you do, you must submit these before applying to join the scheme.
Make sure prior to your application you know the amount you deferred and how much you have already paid.
To join the online service, you must:
- join the scheme yourself, we as your agent cannot do this for you
- still have deferred VAT to be paid
- be up to date with your VAT returns
- join by 21 June 2021
- pay the first instalment when you join
- pay your instalments by Direct Debit (if you want to use the scheme but cannot pay by Direct Debit, there’s an alternative entry route for you)
You can apply here.
