Paying VAT deferred due to Coronavirus – new payment scheme opens 23 Feb 2021
Further details on the VAT deferral new payment scheme, which will be open from 23 February 2021 up to and including 21 June 2021, have now been released.
As outlined in our previous news article, if you deferred VAT payments due between 20 March and 30 June 2020 and still have payments to make, you may be able to formally opt in to the new scheme to pay the amount owing in between two and eleven equal monthly instalments up to March 2022.
You can, if you prefer, pay the deferred VAT in full on or before 31 March 2021 and do not need to contact HMRC to do this.
Joining the new payments scheme
The new payment scheme will allow you to pay the amount due in up to 11 equal smaller monthly payments, interest free. It is important to note that you must join the scheme yourself, we cannot do this for you.
To use the online service, you must:
• still have deferred VAT to pay
• 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 (There is an alternative entry route if you cannot pay by Direct Debit)
You will be able to use the online service to join the scheme from 23 February 2021 up to and including 21 June 2021. The month that you join the scheme will determine the maximum number of instalments that are available to you.
The monthly joining deadlines are shown below:
Join by 19 March 2021 - up to 11 instalments available
Join by 21 April 2021 - up to 10 instalments available
Join by 19 May 2021 - up to 9 instalments available
Join by 21 June 2021- up to 8 instalments available
You may be charged interest or a penalty if you do not opt in to the new scheme by 21 June 2021.
You can find out more about the new payment scheme, including the requirements businesses must meet in order to join the scheme and what you must do before you join, on the Government website here.
Please note that, instead of joining the scheme, you can contact HMRC on 0800 024 1222 by 30 June if you need extra help to pay. If you go down this route, you will need to have agreed a time to pay arrangement with HMRC by 30 June to avoid interest and penalties arising.
We are here to help
If you deferred VAT, please do not hesitate to get in touch with a member of our team to discuss your individual circumstances and the options available to you.
Although we are unable to opt in to the payment scheme on your behalf, we can provide you with support on how to make the claim.
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