Deferred VAT Payments – message from HMRC

If your client deferred VAT payments due between 20 March and 30 June 2020 and still has payments to make, they can now join the online VAT deferral new payment scheme.

The new scheme lets your client pay their deferred VAT in equal instalments, interest free.

Your client can spread their payments across 2 to 11 monthly instalments, including their first payment, depending on when they join. The earlier they join, the more months they must spread your payments across.

  • 11 instalments if your client joins by 19 March 2021
  • 10 instalments if your client joins by 21 April 2021
  • 9 instalments if your client joins by 19 May 2021
  • 8 instalments if your client joins by 21 June 2021

Your client can join the scheme online quickly and simply without the need to call. To find out more information, including what your clients need to do before joining, go to www.gov.uk/hmrc/vat-deferral.

The online service will close on 21 June 2021 and if your client wants to join the scheme online, they must do so before 21 June. If your client is on the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme, they’ll be invited to join the new payment scheme later in March 2021.

If your client can pay, their deferred VAT by 31 March 2021 they should do so. If your client needs more help, then go to www.gov.uk/difficulties-paying-hmrc.

If your client has a Time to Pay arrangement already in place for deferred VAT, they are unable to join the VAT deferral new payment scheme for their deferred VAT but can amend their Time to Pay arrangement to include all of their deferred VAT. Your client can contact HMRC to do this.

A reminder that if any of your clients have deferred VAT payments, the VAT Deferral new payment scheme is now open to join up until 21 June 2021. Instead of paying the full amount by 31 March 2021, the new scheme lets you pay in 2 to 11 smaller, interest free instalments. The number of instalments depends on when you join the scheme. There is no agent journey for this scheme and all VAT returns must be up to date when joining the scheme.

If your client is on the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme, they cannot yet join the scheme but will very soon be able to sign-up to the scheme in March 2021.

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For online payments taken via the Invoice Payment page, no refunds can be given as payment is only taken after my service has been provided.

 

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