From the end of February, if you have deferred VAT payments between March and June 2020 and still have payment to make, you will be eligible to opt into the new VAT deferral payment scheme.
When can I opt-in to the scheme?
The scheme is open from 23 February to 21 June 2021, once opted in, this will allow you to pay your deferred VAT in 2 to 11 equal instalments, interest free. However, if you do not opt in you must pay your deferred VAT by 31 March 2021.
How many instalments are available to me?
The number of instalments available to you will depend on when you join the scheme for example, if you join by 19 March 2021 11 instalments will be available however if you join by 21 June 2021 this will be reduced to 8 instalments. Essentially, the earlier you join the more time you will have to pay.
Is there anything I need to do before I opt in?
Before joining the scheme there are some criteria’s that need to be met:
- If you do not already have a Government Gateway account, you must set one up.
- Submit any VAT returns from the last 4 years that are outstanding – this is essential to be eligible to join the scheme.
- You need to know how much you VAT you owe, including the amount you have already deferred minus how much you may have already paid.
- If you have any errors to correct on previous VAT returns, these must be amended as soon as possible.
How do I join the scheme?
You can opt into the scheme online without needing to call, avoiding long waiting times. Get more information and how to opt-in quickly to the VAT deferral scheme online when the scheme opens.
If you can pay your deferred VAT by 31 March 2021, then please do so.
However, if you are still unable to pay and need more time than the deferred scheme, contact HMRC as soon as possible as there may be other help available to you.
If you are not sure if this scheme is right for you or need further advice, please contact us and we will be happy to assist you.