Government guidance on the new VAT deferral payment scheme expected to open in February 2021
The Government has indicated businesses who have deferred VAT due from 20 March 2020 to 30 June 2020 and still have payments to make, can opt into the VAT deferral new payment scheme to pay the deferred VAT over a longer period.
According to the February 2021 Employer Bulletin on the Government website, the VAT deferral new payment scheme is expected to open 23 February 2021 and close at the end of June 2021. If you opt-in you can make up to 11 smaller monthly instalments, interest free.
You can opt into the scheme online without the need to call; more information about VAT deferral and how to opt-in quickly will be available online when the scheme opens.
Businesses that need additional help to pay their deferred VAT should contact HMRC.
However, the Government highlighted that if you can pay your deferred VAT by 31 March 2021 you should do so.
For further information, please see the ‘Employer Bulletin’ for February 2021 on the Government website