Deadline to join this scheme is 21st June 2021.
Businesses that deferred VAT payments last year have until 21st June to join the new online payment scheme and spread the impact of deferred VAT payments.
Which VAT arrears can be paid off in this way?
The scheme covers VAT deferred – and is still unpaid – from the period 20 March 2020 to 30 June 2020 under the VAT Payment Deferral Scheme.
How will payments be spread under this scheme?
Businesses can pay their deferred VAT in two to eight consecutive instalments without adding interest if they join online by 21 June 2021.
A first payment will be taken when you join.
How to join this scheme:
Before joining, you must:
- have your VAT registration number,
- create your own Government Gateway account (if you do not already have one),
- submit any outstanding VAT returns from the last 4 years – otherwise you’ll not be able to join the scheme,
- correct errors on your VAT returns as soon as possible,
- make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid.
To use the online service, you must:
- join the scheme yourself, your agent cannot do this for you,
- still have deferred VAT to pay,
- be up to date with your VAT returns,
- join by 21 June 2021,
- pay the first instalment when you join,
- pay your instalments by Direct Debit (if you want to use the scheme but cannot pay by Direct Debit, there is an alternative entry route for you).
Time to act
If you still have unpaid, deferred VAT from last year this scheme offers a way to get up to date with payments and minimise the impact on your cashflow.