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.
Businesses that deferred VAT payments due between 20 March and 30 June 2020 under the VAT Payment Deferral Scheme are eligible to apply.
To apply for the VAT New Payment Deferral Scheme, businesses must opt in via a new online service that opens today and closes on 21 June 2021.
Payments can be spread over two to 11 equal monthly instalments, interest-free. Payments can start from March, April, May or June 2021, and the earlier businesses opt-in the more instalments are available to help spread the cost.
Businesses that deferred VAT under the VAT Payment Deferral Scheme also have the option either to:
- pay the deferred VAT in full by 31 March 2021; or
- contact HMRC by 30 June to negotiate Time to Pay.
Businesses wishing to take advantage of the new instalment option must apply online and will be required to set up a Direct Debit arrangement as part of the "digital opt-in" process. Agents, regrettably, are unable to apply on behalf of their clients.
Further details are available on the government website here.
If you require further assistance regarding your VAT affairs, contact us today.