office@ajrandco.co.uk

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VAT deferred due to coronavirus

How to pay VAT payments deferred between 20 March and 30 June 2020.

If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you can:

  • pay the deferred VAT in full on or before 31 March 2021
  • opt in to the VAT deferral new payment scheme when it launches in 2021
  • contact HMRC if you need more help to pay

If you can pay the deferred VAT in full by 31st March 2021 then you do not need to contact HMRC.

To Opt in to the new payment scheme

The online opt in process will be available in early 2021. You must opt in yourself, your agent cannot do this for you.

Benefits of the VAT deferred scheme

  • VAT can be paid in instalments without interest being added
  • The number of instalments can be chosen from 2 -11 equal monthly payments

Scheme eligibility

  • still have deferred VAT to pay
  • be up to date with your VAT returns
  • opt in before the end of March 2021
  • pay the first instalment before the end of March 2021
  • be able to pay the deferred VAT by Direct Debit

If you opt in to the scheme, you can still have a time to pay arrangement for other HMRC debts and outstanding tax.

Get ready to opt in to the new payment scheme

Before opting in you must:

  • create your own Government Gateway account if you don’t already have one
  • submit any outstanding VAT returns from the last 4 years. You will not be able to join the scheme if you have not done so
  • correct errors on your VAT returns as soon as possible. Corrections received after 31 December 2020 may not show in your deferred VAT balance
  • make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid

You should also:

  • pay what you can as soon as possible to allow us to show the correct deferred VAT balance
  • consider the number of equal instalments you’ll need, from 2 to 11 months

If you would like further advice contact AJR & Co Ltd