For businesses who deferred a VAT liability that was due between 20 March 2020 and 30 June 2020, the Government is to make available a new scheme which will further defer this liability.
The VAT deferral new payment scheme will be open from 23 February 2021 up to and including 21 June 2021.
The new scheme allows businesses to:
- pay the deferred VAT in interest free, equal installments,
- choose the number of installments, from 2 to 11 (dependent on when the scheme is joined).
To be eligible for the scheme a business must:
- still have deferred VAT to pay,
- be up to date with VAT returns.
- join by 21 June 2021.
The scheme must be opted into directly by the business. Please note, an agent such as Dixcart UK, is unable to join on behalf of a business. The first installment will be due at the point the scheme is opted into.
To avoid any interest or penalty, businesses who deferred a VAT liability which was due between 20 March and 30 June 2020 must either:
- pay the deferred VAT in full by 31 March 2021,
- opt into the new payment scheme by 21 June 2021,
- agree extra help to pay with HMRC by 30 June 2021.