News
VAT deferral scheme opens 23 February
22 Feb 2021
Earlier in the Covid 19 pandemic many businesses will have deferred VAT payments which fell due between 20th March and 30th June 2020.
Without any further action these deferred payments will become payable in full on 31st March this year. However, a scheme that allows businesses to spread the deferred amount over between 2 and 11 equal instalments (at the business’s option) opens for online applications on Tuesday 23rd February. If a business joins the scheme later in the period it is open (until 21st June) the maximum number of instalments may be reduced. The instalments are interest free.
In order to join the scheme online a business must:
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Join the scheme itself – tax agents cannot do this on the business’s behalf
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Still have deferred VAT to pay
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Be up to date with its VAT returns
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Correct any errors on VAT returns covered by the scheme as soon as possible
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Join by 21st June 2021
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Pay the first instalment when it joins
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Pay its instalments by Direct Debit (there will be an alternative entry route if direct debit payments are not possible).
A business will need its own Government Gateway account to join. If the business does not already have an account it can be created at the following link:
https://www.gov.uk/log-in-register-hmrc-online-services/register
Further details of the scheme can be found at the link below:
https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19#want-to-join
If a business is still struggling to pay its deferred VAT or any other tax liabilities HMRC’s Covid-19 time to pay helpline is still open – 0800 024 1222
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