23 Feb VAT Payment Deferral
Many businesses chose to take the option to defer their VAT payments due between 20 March and 30 June 2020, which then became payable by 31 March 2021. However, with the effects of the pandemic lasting far longer than most had anticipated, and cashflow remaining a concern for many businesses, a new VAT deferral payment scheme has been set up which will allow those deferred payments to be spread over a longer period.
The online service, which is accessed through your Government Gateway account, opens on the 23 February 2021 and closes on 21 June 2021. The scheme allows for the outstanding liability to be paid over 2 to 11 instalments, interest free. However, to pay over the maximum of 11 instalments you must join the scheme by 19 March, or by 21 April for 10 instalments, 19 May for 9 instalments and 21 June for 8 instalments.
To be eligible for the scheme you must:
- Have submitted all your VAT Returns due over the last 4 years.
- Pay your first instalment when you join.
- Pay by Direct Debit.
If you require more time to pay than can be agreed through the online service, you should contact HMRC directly by 30 June 2021 on 0800 024 1222.
Interest or penalties may be applied if you do not pay by 31 March, opt into the scheme by 21 June or agree extra help with HMRC by 30 June 2021.
If you would like to discuss your individual circumstances, please contact a member of the team.