Coronavirus – Online VAT Deferral Payment Scheme

 In Coronavirus

Coronavirus – Online VAT Deferral Payment Scheme

If you deferred your VAT payments due between 20‌‌ ‌March and 30 June 2020 and still have payments to make, you should pay by 31‌‌ ‌March 2021 if you can.

However if you cannot afford to pay by 31‌‌ ‌March this year, you can now join the online VAT deferral new payment scheme to spread the payment.

The Scheme

The new scheme lets customers pay their deferred VAT in equal monthly instalments, interest free. You can spread payment across a number of months, depending when you join – the earlier you join, the more months you have to spread the payments across:

  • 11 instalments if they join by 19‌‌ ‌March 2021
  • 10 instalments if they join by 21‌‌ ‌April 2021
  • 9 instalments if they join by 19‌‌ ‌May 2021
  • 8 instalments if they join by 21‌‌ ‌June 2021

Your can join the scheme quickly and simply online, without the need to call HMRC.

The online service will close on 21‌‌ ‌June 2021 – if you wants to join the scheme online, you must do so before this date.

If you are on the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme, you’ll be able to join the new payment scheme later in March 2021.

If you have a Time to Pay arrangement already in place for you deferred VAT, you cannot use the online scheme. If you want to amend your Time to Pay arrangement, you should contact HMRC to do this.

Join the scheme here:

 https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

Source: HMRC ‘Help and Support’ advice email

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