HMRC have recently announced a VAT deferral scheme which will allow businesses that deferred their VAT payments between 20th March and 30th June 2020 to pay the deferred VAT in monthly installments. The earlier you join, the longer the period of time over which you will be able to spread your VAT payments :-
- Join before 19th March – 11 Instalments
- Join before 21st April – 10 Instalments
- Join before 19th May – 9 Instalments
- Join before 21st June – 8 Instalments
This is a helpful concession from HMRC for businesses that would otherwise face a significant payment spike from having to pay both the current VAT due and the previous amounts outstaning at the end of March. If however you still neeed extra help, you can call HMRC on 0800 024 1222 by 30 June 2021 and discuss extra options.
To join the scheme you must :-
- Create your own Government Gateway account (if you do not already have one)
- Submit any outstanding VAT returns from the last 4 years – otherwise you’ll not be able to join the scheme
- Correct any errors on previous VAT returns as soon as possible
- Make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid
Applications to join the scheme are all processed on-line (through the Government Gateway) and must be made by the business itself (and not from an agent). The first installment will be payable on joining the scheme
More information can be found here https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
