As part of the government’s funding strategy for Covid-19 last year, over half a million businesses deferred VAT payments that were due between 20 March – 30 June 2020. Businesses that still have outstanding VAT from this period can choose to pay the deferred VAT in full on or before 31 March 2021 or join the VAT deferral New Payment Scheme.
The VAT deferral New Payment Scheme opened on 23 February 2021 and is available until 21 June 2021. Opting into the scheme will allow businesses to pay the deferred VAT in interest free instalments, spread between 2 and 11 months. Those businesses wishing to spread payments over the full 11 months will need to join the scheme by 19 March.
The VAT Deferral New Payment scheme will require a direct debit to be set up as part of the digital opt-in process and this must be done by the authorised bank account holder. Because of that, HMRC is unable to provide an agent service for the scheme. In order to join the scheme, you must be up to date with VAT return submissions. The first payment instalment will be taken upon signing up to the scheme.
Get in touch
If you have any questions about the scheme, please get in touch with us on 01392 241228 or email misty at Misty@griffinaccountancy.co.uk.