Businesses that deferred VAT payments last year can join the new scheme to pay it in eleven smaller monthly instalments from today.
Eligible businesses will need to have deferred VAT payments between March and June 2020 under the VAT Payment Deferral Scheme and now have the option to pay their deferred VAT in equal consecutive instalments from March 2021.
Businesses will need to opt-in to the VAT Deferral New Payment Scheme and can do so from today up until it closes on 21st June 2021.
Businesses can spread their payments with 2 to 11 equal monthly instalments, interest free. Payments can start from March 2021, and the earlier businesses opt-in, the more instalments are available to help spread the cost and provide further support.
Alternatively businesses may opt to pay their deferred Vat in full, on or before 31 March 2021.
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.
Full details of the VAT Deferral Payment Scheme can be found on the government website.