VAT deferral ‘New Payment Scheme’

Posted on 1st October 2020 by Streets


Image to represent VAT deferral ‘New Payment Scheme’

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.


No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


Expert insight and news straight
to your inbox

Related Articles


New Companies House powers

The recently introduced Economic Crime and Transparency Act has gifted Companies House a range of new powers aimed at reducing exploitation by corporate entities to pursue illegal enterprise. The aim of the new reforms are: Introducing identity


Cyber protection laws introduced

New consumer protections against hacking and cyber-attacks came into force at the end of April 2024. All internet connected smart devices will be required by law to meet minimum-security standards. Manufacturers will be legally required to protect


Tax Diary June/July 2024

1 June 2024 - Due date for corporation tax due for the year ended 31 August 2023. 19 June 2024 - PAYE and NIC deductions due for month ended 5 June 2024. (If you pay your tax electronically the due date is 22 June 2024). 19 June 2024 - Filing


You might also be interested in...