New VAT Deferral Scheme

Last week HMRC announced a new scheme to help pay outstanding VAT.

If businesses deferred paying VAT due in the period from 20‌‌‌‌ ‌March to 30‌‌ ‌June‌‌ ‌2020 and can’t afford to pay by 31‌‌ March‌‌ ‌2021, they can join the VAT deferral new payment scheme and pay their deferred VAT over a longer period.

The online service will open on 23‌‌ February‌‌ ‌2021 and close on 21‌‌ June‌‌ ‌2021. Businesses can make up to 11 monthly instalments, interest free. The earlier you join, the more months you can spread your payments across.

You can join the scheme online without the need to call – go to GOV.UK for more information and to join quickly and simply when the scheme opens.

Businesses that need more time to pay their deferred VAT should contact HMRC.

Published by
Stephanie Jenner
Senior Client Manager at AF Tax Solutions Ltd