If you deferred VAT payments due between 20 March 2020 and 30 June 2020 and still have an amount outstanding, there are 3 options available to you regarding this amount:
- Pay the deferred VAT: Pay your deferred VAT in full by 31 March 2021. You do not need to contact HMRC to tell them.
- Opt in to the VAT deferral payment scheme: You can opt into this scheme between 23 February 2021 and 21 June 2021 by clicking here. This scheme will allow you to make up to 11 equal monthly instalments, interest free. The maximum number of instalments available will depend on when you join the scheme as set out below:
The first instalment must be paid when you opt in and then subsequent instalments paid by direct debit. To use the scheme you must also be up to date with your VAT returns and correct any errors you are aware of as soon as possible.
If you join by: Number of instalments available: 19 March 2021 11 21 April 2021 10 19 May 2021 9 21 June 2021 8
The taxpayer must opt in themselves through their government gateway account. We cannot do this for you as your agent, but we can certainly assist you in the process. We recommend that you create your own government gateway account if you don’t already have one. Again we cannot set this up for you but we can assist you.
If you are unable to use the online service or pay by direct debit you can call HMRC on 0800 024 1222 and they will help you to join.
Contact HMRC if you need more help to pay: If you require more time than option 2 provides you can contact HMRC for further help by calling them on 0800 024 1222 by 30 June 2021.
You may be charged interest or a penalty if you do not take any of the above options.
If you would like to discuss these options further, please do not hesitate to contact us.