Chartered Accountants
The VAT Deferral New Payment Scheme
As mentioned in our previous article, businesses that deferred their VAT payments due between 20 March to 30 June 2020 can opt-in to the VAT deferral new payment scheme.
The VAT deferral new payment scheme allows you to make interest free equal payments over a number of instalments, from 2 to 11, depending on when you join the scheme.
Before opting into the scheme you must have a Government Gateway account, submit any outstanding VAT returns from the last 4 years, correct any errors and know how much you owe, including the amount you originally deferred and how much you may have already paid.
The scheme will open on 23 February 2021 and entrants will have until 21 June 2021 to apply through an online service. To be eligible you must:
- join the scheme yourself as your agent cannot do this on your behalf
- have deferred VAT to pay
- be up to date with your VAT returns
- pay the first instalment when you join
- pay your instalments by Direct Debit, although there is an alternative payment option available
If you cannot use the online service, contact the COVID-19 helpline when the scheme opens on 0800 024 1222. You can read more here.
If you would like to discuss your circumstances, you can contact our VAT Taxperts by calling one of our offices or emailing [email protected].
