VAT Payments Deferral – Action Required
As many businesses continue to face financial uncertainty it’s important to remind everyone that the VAT payments deferral scheme will open soon.
HMRC has updated its guidance with information on how to join the VAT deferral new payment scheme - the online service is open between 23 February and 21 June 2021.
Businesses who are on the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme will be invited to join the new payment scheme in March 2021.
The new scheme lets businesses pay the deferred VAT in equal instalments, interest free and choose the number of instalments, from 2 to 11 depending on when they join. The month in which businesses decide to join the scheme will determine the maximum number of instalments that are available to them. If they join the scheme in March, they will be able to pay their deferred VAT in 11 instalments or fewer.
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