Businesses that deferred VAT payments last year can join the new scheme to pay it in smaller monthly installments.
Over half a million businesses that deferred VAT payments last year can now join the new online VAT Deferral New Payment Scheme to pay it in smaller monthly instalments, HMRC announced today (23 February 2021).
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.
Businesses will need to opt-in to the VAT Deferral New Payment Scheme. They can do this via the online service that opens on 23 February 2021 and closes on 21 June 2021.
Jesse Norman, Financial Secretary to the Treasury, said:
This… will help provide businesses with the breathing space they may need to manage their cashflows in the weeks and months ahead.
The scheme is open to businesses that deferred VAT due from 20 March to 30 June 2020 (under the VAT Payment Deferral Scheme) and still have payments to make.
- 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
Read more about the UK government’s press release here.