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If you deferred the VAT due on your business between 20 March 2020 and 30 June 2020, you can join the new VAT deferral payment scheme from today until 21 June 2021.
As part of the Coronavirus support schemes businesses were given the opportunity to defer payment until 31 March 2021 to give them breathing room at this most difficult of times.
Businesses who deferred their VAT payment due for payment between 20 March 2020 and 30 June 2020 now have three options:
- Pay their VAT in full on or before 31 March 2021;
- Join the new VAT deferral scheme (more details below); or
- Contact HMRC direct before 30 June 2021, if you need extra help on 0800 024 1222.
As difficult as things are right now, we recommend you do something. HMRC charge interest and penalties if you do not choose one of these three options.
VAT Deferral Scheme
If you join the new scheme between now and 21 June 2021, you have the opportunity to pay the VAT you deferred in interest-free equal instalments of between two and 11 months, depending when you join the scheme, as shown in the table below:
| Join by: | Number of instalments available: |
|---|---|
| 19 March 2021 | 11 |
| 21 April 2021 | 10 |
| 19 May 2021 | 9 |
| 21 June 2021 | 8 |
To join the scheme, you must:
- Join the scheme yourself, your agent cannot do this for you;
- Still have deferred VAT to pay;
- Be up to date with your VAT returns;
- Join by 21 June 2021;
- Create a Government Gateway account (if you don’t have one already);
- Submit any outstanding VAT returns from the last four years;
- Correct any errors on your VAT returns as soon as possible;
- Pay the first instalment when you join; and
- Pay your instalments by Direct Debit (although if you want to use the scheme but cannot pay by Direct Debit, there’s an alternative entry route for you).
You can still join this scheme, even if you have other Time to Pay arrangements in place with HMRC. Also, if you are not able to use the online services, you can contact the COVID-19 helpline on 0800 024 1222.
If you’re on the VAT Annual Accounting Scheme or VAT Payment on Account Scheme, a new payment scheme will be launched in March 2021.
Black and White Accounting
At this most difficult of times, we are doing everything we can to help and support our amazing clients, for example by keeping them up to date with all the latest news and support schemes. Why not sign up to our newsletter using the link below, or follow us across Facebook, Instagram, LinkedIn, Twitter and YouTube to be kept up to date too?
If there is anything else we can do to help at this point, please get in touch by contacting Black and White Chartered Certified Accountants, populate the “Got a Question” form on the right, or call us on 0800 140 4644.
