Businesses that deferred VAT payments last year can now join the new scheme to make payments in smaller monthly instalments.
The VAT Deferral New Payment Scheme is open to businesses that deferred VAT due from 20 March to 30 June 2020 (under the VAT Payment Deferral Scheme) and still have payments to make.
Businesses will need to opt-in to the VAT Deferral New Payment Scheme to pay VAT in smaller monthly instalments.
Payments can easily be set up through the new payment scheme portal which is now open and closes on 21 June 2021.
Businesses can spread their payments with 2 to 11 equal monthly instalments, interest free.
Payments can start from March 2021 and the earlier a business opts in, the maximum number of instalments (11) can be achieved (if signed up for by 19 March to pay by Direct Debit) or this will drop down to 10 instalments and so on.
All other delayed / missing VAT returns and any other payments in part or in whole due for other VAT returns apart from the one for which the payment was deferred, must be submitted and paid first.
You can find details of what businesses must do before they opt-in here.
If you need extra help to pay and do not contact HMRC by 30 June 2021, you may be charged interest or a penalty.
The VAT Deferral New Payment scheme will require a direct debit to be set up as part of the digital opt-in process and this must be done by the authorised bank account holder. For this reason, we are unable to opt into the scheme on your behalf.
If you have any concerns or queries relating to this new scheme or any other matter, please contact your usual Beavis Morgan partner or email info@beavismorgan.com.