VAT deferral payment scheme
This scheme is open until 21 June 2021
Businesses that deferred VAT payments last year, some half a million, can join the new deferral payment scheme to pay it in smaller monthly instalments.
In order to take advantage of the new payment scheme, businesses will need to have deferred VAT payments between March and June 2020 under the VAT Payment Deferral Scheme. They will now be given the option to pay their deferred VAT in equal consecutive monthly instalments from March 2021. Deferred VAT can be paid in 2 to 11 consecutive instalments starting in March, April, May or June 2021, without adding interest.
Businesses that deferred VAT due from 20 March to 30 June 2020 (under the VAT Payment Deferral Scheme) and still have payments to make can:
· pay the deferred VAT in full, on or before 31 March 2021
· opt-in to the VAT Deferral New Payment Scheme online between 23 February and 21 June 2021
· contact HMRC by 30 June 2021 if they need to agree extra help to pay
Businesses who need additional time to pay, and have not contacted HMRC by 30 June 2021, may be charged interest or a penalty.
Please get in touch with at EBS Accountants if you would like advice on your own specific circumstances and we will be glad to help.
The HMRC Coronavirus Helpline 0800 024 1222 is open 8am to 4pm Monday to Friday, except bank holidays.