New deferred VAT payment scheme

HMRC has confirmed that VAT payments that were due between 20 March and 30 June 2020 and deferred until 31 March 2021 can be paid in instalments by opting into a new scheme.

The deferred payment can be paid in full or in equal monthly instalments. The new opt-in scheme will allow you to pay your deferred VAT in up to 11 regular monthly instalments, interest free, beginning in March 2021.

The option to opt in will be available soon. Please note that this will be done through your Government Gateway account, it’s not something that your accountant or other agent can do on your behalf. If you don’t have a Government Gateway account it’s worth setting one up now, in preparation. You can find more about how the scheme works and getting ready to use it here.

What if you need further help?

HMRC advises that if you need further help to pay your deferred VAT, you should go to GOV.UK and search 'Deferred VAT'.

About the Author

Victoria Stoddart

Business Services Executive

Victoria is a business services executive based in our Sunderland office. She joined the firm in 2009 as a trainee and has progressed to her current role whilst undertaking her AAT and ACCA qualifications. She works closely with a small portfolio of clients which comprise a range of entities including charitable organisations and solicitors. Her role involves the preparation of year end accounts and audits as well as management accounts and VAT returns. Victoria enjoys yoga, Netflix binges in her free time and is a bit obsessed with cats!

To get in touch please e-mail victoria.stoddart@torgersens.com.