Businesses that deferred VAT payments last year have one month left to join online to pay monthly instalments under the VAT Deferral Payment Scheme.
The online portal for the new payment scheme closes on 21 June 2021.
Over half a million businesses deferred £34 billion in VAT payments due between March and June 2020 under the VAT Payment Deferral Scheme. Businesses had until 31 March 2021 to pay this deferred VAT. Or go online from 23 February to set up a new payment scheme and pay by monthly installments to spread the cost.
Businesses that deferred paying their VAT last spring have until 21 June to join the VAT Deferral New Payment Scheme online.
“The new payment scheme is part of the Government package of support worth over £350 billion to help protect millions of jobs and businesses during the pandemic. As we emerge on the path to recovery. “HMRC will continue to do all we can to help businesses as they reopen and rebuild.”Jim Harra, HMRC’s Chief Executive
Joining the Scheme
The March, April and May joining dates have passed, but businesses can still spread their payments across up to eight equal monthly instalments, interest-free, if they join by 21 June 2021. Payments can easily be set up via the VAT Deferral New Payment Scheme portal.
HMRC data to 30 April 2021 shows 228,850 businesses that deferred their VAT last year have already paid their VAT in full. This, along with instalments already made under the new payment scheme and other payment plans, totals £15.1 billion.
Eligible businesses that are unable to use the online service by 21 June 2021 can ring the HMRC Coronavirus Helpline on 0800 024 1222 to join the scheme until 30 June 2021.
Businesses may face penalties and/or interest if they take no action by 30 June 2021.
If you need further advice on this contact AJR & Co Ltd.