Tuesday, 1 June 2021

VAT deferral monthly payment scheme closing soon

The VAT deferral new payment scheme is open for all businesses that deferred VAT due between 20 March 2020 and 30 June 2020 and were unable to pay in full by 31 March 2021.

Businesses can spread these payments over several months – businesses that join by 21 June 2021 will still be able to benefit from up to 8 monthly instalments.

Businesses can join the easy-to-use scheme quickly and simply without needing to call HMRC.

Before joining, businesses must:

have their VAT registration number
create their own Government Gateway account (if they do not already have one)
submit any outstanding VAT returns from the last 4 years – otherwise they will not be able to join the scheme
correct errors on their VAT returns as soon as possible
make sure they know how much is owed, including the amount originally deferred and how much they may have already paid

Businesses may be charged a 5% penalty and interest if they do not either pay in full, sign up to the scheme online by 21 June 2021, or get in touch with HMRC to make an arrangement to pay by 30 June 2021.

For more information see:  VAT Deferral New Payment Scheme - https://www.gov.uk/government/news/vat-deferral-new-payment-scheme-online-service-opens

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