If you deferred VAT payments due between 20 March and 30 June 2020 and still have payments to make, you can now:
- pay the deferred VAT in full now, before 31 March 2021, or
- sign up by 21 June to use the new equal instalments payment scheme up to January 2022, or
- contact HMRC on 0800 024 1222 if you need extra time to pay by 30 June 2021
To pay in instalments, you’ll need to join the VAT deferment scheme set up by HMRC. This is an automated process accessed through an online portal. This can’t be done by your agent (external accountant), because part of the process is to set up a direct debit from your business bank account.
You can choose the number of instalments between 2-11 to make when you sign up, but the maximum of 11 will only available if you have joined by 19 March. The first payment will be taken immediately when you set it up.
The online scheme is open until 21 June 2021. This article will be updated with a link once it is available.
There will be no interest charged.
You must have submitted all your outstanding VAT returns that are past their filing due date before signing up. You’ll also need to know how much VAT you deferred and how much of the VAT is still to be paid.