If you deferred VAT payments last year you have until 21 June 2021 to join the new payment scheme to spread the cost of your deferred VAT in monthly instalments under the VAT Deferral New Payment Scheme.
The VAT Deferral New Payment Scheme means businesses can now manage their cashflow by paying their deferred VAT more gradually, continuing to protect jobs across the UK as we emerge from the pandemic and build back better.
The March, April and May joining dates have passed, but you can still spread their payments across up to eight equal monthly instalments, interest-free, if you join by 21 June 2021. Payments can easily be set up via the VAT Deferral New Payment Scheme portal.
If you are eligible but are unable to use the HMRC online service by 21 June 2021 you can call the HMRC Coronavirus Helpline on 0800 024 1222 to join the scheme until 30 June 2021.
The scheme launched on 23 February 2021 and 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.
Businesses may be charged a 5% penalty and/or interest if you don’t join up to the scheme online by 21 June, or pay in full by 30 June, or contact HMRC to make an arrangement to pay by 30 June 2021. You should also contact HMRC by 30 June 2021 if you need to agree extra help to pay.
If we can help you with deferred your VAT payments please get in touch.