The VAT deferral payment scheme will be live on the 23rd February 2021. Read on for the main points.
It feels like a lifetime since the first UK lockdown, but back in March the Chancellor, Rishi Sunak, announced that the Government will be supporting UK businesses by allowing them to defer their VAT payments. The deferral applied to payments that fell due between 20th March 2020 & 30th June 2020 (VAT periods ending February, March & April).
As all good things come to an end, so does the deferral period. Payments for the above periods are falling due 31st March 2021.
The goods news here is that HMRC are opening up a new service which will allow you to spread the payments over 2 to 11 months (depending on when you sign up). Here’s everything you need to know about the scheme.
The scheme will be open from 23rd February up to, and including, 21st June 2021. You’ll be able to spread the payment between 2 to 11 months. All payments are interest free, even if you chose the longest instalment option. The table below from HMRC shows the number of payments available to you, depending on when you join.
If you join by: Number of instalments avaliable to you:
19 March 2021 11
21 April 2021 10
19 May 2021 9
21 June 2021 8
Unfortunately, your agent won’t be able to sign you up for this and you’ll need your own Government Gateway account in order to join the scheme. If you don’t have one, you can create one here.
Before joining, you’ll need to ensure you’re up to date with any outstanding VAT returns. Payments will be taken via direct debit, with the first instalment taken when you join.
If you’re unable to pay via direct debit or are unable to use the online service, you’ll need to contact the HMRC Covid-19 helpline on 0800 024 1222 and one of their advisors should be able to assist.
We know these are tough times and if for any reason you’re unable to meet these payments, you’ll want to contact the HMRC Payment Support Service on 0300 200 3835.
If you’re a client of ours and you need any assistance, please get in touch and we’ll guide you through the process. If you’re not a client of ours, why aren’t you? Get in touch.
Full guidance from HMRC can be found here