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VAT Deferral New Payment Scheme – Details Released

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VAT Deferral New Payment Scheme – Details Released

HMRC have released details on how to join the VAT Deferral New Payment Scheme.

VAT deferred from Feb-20, Mar-20 and Apr-20 was originally due to be paid in full by 31st March 2021.

Options

You now have three options to pay deferred VAT:

  • Pay in full by 31st March 2021 – payment details are here – your 9 digit VAT number is the reference
  • Contact HMRC to discuss a time to pay arrangement – 0800 024 1222
  • Use the VAT Deferral New Payment Scheme

VAT Deferral New Payment Scheme

The new payment scheme enables the VAT deferred from 2020 to be spread out on a payment plan to 31st March 2022.

The scheme is open from 23rd February 2021 to 21st June 2021

  • The VAT deferred from 2020 can be spread in interest-free equal monthly repayments
  • The number of repayments you make depends on the date you join the scheme:
    • Join before 19th March – 11 repayments
    • Join before 21st April – 10 repayments
    • Join before 19th May – 9 repayments
    • Join before 21st June – 8 repayments
  • All deferred VAT must be repaid by 31st March 2022

To use the scheme you must:

  • be up to date with your VAT returns
  • be able to pay by Direct Debit

How to apply

  • You need to access your Government Gateway account or create a Government Gateway account if you don’t have one
  • Your accountant cannot apply for the new scheme on your behalf
  • You must know the value of deferred VAT you are looking to pay using the new scheme

More details from HMRC can be found here.

If you have any questions on the VAT Deferral New Payment Scheme, please get in touch.