VAT payment deferral scheme extended – businesses need to sign up by 21st June to avoid being caught out

If you’ve taken advantage of the Covid VAT payment deferral scheme you have until 21st June to register with HMRC to repay the outstanding VAT by monthly instalments. The deadline for payment in full or to opt into the monthly instalment plan was 31st March 2021 but has now been extended to 21 June 2021.

If you’ve deferred VAT payments due between 20th March and 30th June 2020 and still have amounts outstanding, you can do the following:

*   Pay the deferred VAT in full, on or before 31st March 2021

*   Join the VAT deferral new payment scheme

The online service is open between 23rd February and 21st June 2021

*   Contact HMRC if neither of the above apply

Failure to do either of the above may result in HMRC charging interest or a penalty.

You can pay your deferred VAT here. <http://www.gov.uk/pay-vat>

The new scheme will be open from 23rd February 2021 and is accessible via your HMRC Business Tax Account. The first instalment has to be paid when applying to use the scheme, with the following payments being made via direct debit (if you’re unable to pay via direct debit alternative payment methods will be available).

Businesses must join the scheme themselves by 21st June 2021. Unfortunately, agents can’t do this on behalf of clients as the HMRC software doesn’t allow us do to so. To be eligible to use the deferral scheme, businesses must have a balance outstanding to HMRC but all VAT returns must be submitted and up to date.

For larger businesses who are in the VAT payment-on-account regime, the scheme will be available to use towards the end of March.

If you need further information or advice please drop us an email to:  hello@jeffreyahuddart.co.uk