If you deferred your VAT payment last year (the one that was due between 20th March & 30th June 2020) HMRC have now released more details on the extended payment terms available.
You will have the following choices on how to make payment:
- pay the deferred VAT in full, on or before 31 March 2021
- join the VAT deferral new payment scheme – the online service is open between 23 February and 21 June 2021
- contact HMRC on Telephone: 0800 024 1222 by 30 June if you need extra help to pay
The new VAT deferral scheme lets you:
- pay your deferred VAT in equal instalments, interest free
- choose the number of instalments, from 2 to 11 (depending on when you join)
To use the online service, you must:
- join the scheme yourself, as your agent we cannot do this for you
- still have deferred VAT to pay
- be up to date with your VAT returns
- join by 21 June 2021
- pay the first instalment when you join
- pay your instalments by Direct Debit
If you join the scheme, you can still have a Time to Pay arrangement for other HMRC debts and outstanding tax.
If you haven’t already got a HMRC account set up, check out our blog on setting up your HMRC account. I’d recommend getting this set up asap, then from the 23rd February you can log on and set up the payment plan if that’s the route you choose.
Source and for more information on the scheme and other payment options check out gov.uk
