But there is further support. These are the options…
- Pay your deferred VAT in full by 31 March 2021.
- Opt in to the VAT deferral new payment scheme when it launches shortly.
- Contact HMRC if you need more help to pay.
The New Payment Scheme
You can’t opt in yet. It will be an online option and your agent cannot do this for you. It will allow you to:
- Pay your deferred VAT in instalments without adding any interest; and
- Select the number of instalments from 2 to 11 equal monthly payments.
To use this scheme you must:
- 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.
Preparing for the New Payment Scheme
Before opting in you will be required to:
- Create your own Government Gateway (https://www.gov.uk/log-in-register-hmrc-online-services) 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 (https://www.gov.uk/vat-corrections) 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 HMRC to show the correct deferred VAT balance
- Consider the number of equal instalments you’ll need, from 2 to 11 months.
Still Unable to Pay?
If you need more time it is essential that you contact HMRC as soon as possible (https://www.gov.uk/business-support-helpline). But do speak to us first.
For more info, give us a call on 01442 202650