VAT Deferral New Payment Scheme – online service opens
Businesses that deferred VAT payments last year can join the new scheme to pay it in smaller monthly instalments.
Over half a million businesses that deferred VAT payments last year can now join the new online VAT Deferral New Payment Scheme to pay it in smaller monthly instalments.
Businesses will need to opt-in to the VAT Deferral New Payment Scheme. They can do this via the online service that opened on 23 February 2021 and closes on 21 June 2021.
The 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.
These businesses can:
- pay the deferred VAT in full, on or before 31 March 2021
- opt-in to the VAT Deferral New Payment Scheme online between 23 February and 21 June 2021
- contact HMRC by 30 June 2021 if they need to agree extra help to pay
You can pay your deferred VAT in 2 to 11 consecutive instalments starting in March, April, May or June 2021, without adding interest.
Those joining online are able to set up direct debit payments. The joining date is slightly longer for those unable to use our online services due to the way payments are processed.
You can find details of what businesses must do before they opt-in.
If you need extra help to pay and have not contacted 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. Because of that, HMRC is unable to provide an agent service for the scheme.
The HMRC Coronavirus Helpline 0800 024 1222 is open 8am to 4pm Monday to Friday, except bank holidays.
More information is available about the VAT Deferral New Payment Scheme, including further detail for people who are unable to opt-in online and what to do if you are a Payment on Account or an Annual Accounting customer.
If you are new to Revel and are keen to find out more, please call our consultant Will Bolter FCCA MAAT ATT (our designated COVID-19 response advisor) on 01428 555100 or contact us by email here.