Businesses can now make VAT payments deferred between 20 March and 30 June 2020 due to the effects of coronavirus, by joining the VAT deferred payment scheme through HMRC’s online portal.
There are three options if you still have VAT payments to make:
- Pay the deferred VAT in full, on or before 31 March 2021
- Join the VAT deferral new payment scheme. The online service is open until 21 June 2021
- Contact HMRC by 30 June 2021 if you need extra help to pay on 0800 024 1222
The new payment scheme lets you either pay your deferred VAT in equal, interest free instalments, or choose the number of instalments, from 2 to 11 (depending on when you join).
If you’re on the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme, you’ll be invited to join the new payment scheme later in March 2021.
How to join
There are several steps to take to join the VAT deferral payment scheme:
- Create your own Government Gateway account (if you do not already have one)
- Submit any outstanding VAT returns from the last 4 years, otherwise you’ll not be able to join the scheme
- Correct any errors on your VAT returns as soon as possible
- Make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid
Please note that you must join the scheme yourself, this can’t be done by your accountant or another agent on your behalf.
If you join the scheme, you can still have a Time to Pay arrangement for other HMRC debts and outstanding tax.
Unable to pay your deferred VAT?
If you’re still unable to pay your VAT bill pay and need more time, please refer to HMRC’s guidance here.
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