VAT deferral ‘New Payment Scheme’

Posted on 1st October 2020 by Streets

As part of the Chancellor’s Winter Economy Plan the government will give businesses that deferred VAT, that was due between 20th March 2020 and 30th June 2020, the option to make smaller payments over a longer period.

Instead of paying the full amount due and deferred by the end of March 2021, you can now make smaller payments up to the end of March 2022, interest free.

Those who wish to further defer their VAT payments will need to opt-in to the New Payment Scheme. HMRC will put in place an opt-in process in early 2021.

Any VAT payments you have deferred between 20 March and 30 June now need to be paid in full on or before 31 March 2022 at the latest.

If you are still unable to pay the VAT due and need more time, please refer to guidance at https://www.gov.uk/difficulties-paying-hmrc or call HMRC on 0300 200 3835.

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