Did you defer VAT payments this year? There’s an interest free, new payment scheme for VAT Deferral.
More about the New Payment Scheme for VAT Deferral
Businesses who deferred VAT due from 20 March to 30 June 2020 will now have the option to pay in smaller payments over a longer period.
Instead of paying the full amount by the end of March 2021, businesses can make up to 11 smaller monthly payments, interest free. All instalments must be paid by the end of March 2022.
You will need to opt-in to the scheme. If you do, it means that your deferred VAT liabilities don’t need to be paid by the end of March 2021.
The VAT Deferral New Payment Scheme will require a Direct Debit to be set up as part of the digital opt-in process and this must be done by the authorised bank account holder. Because of that, HMRC is unable to provide an agent service for the scheme.
Via our updates we will let you know the details of the VAT Deferral New Payment Scheme and its operation as soon as we can. Businesses that can pay their deferred VAT should still do so by 31 March 2021.
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