Over 500,000 VAT registered businesses who deferred VAT payments between March and June 2020 now have the opportunity to join the new online VAT Deferral New Payment Scheme to pay back any VAT arrears in smaller monthly amounts.
Key Points
Businesses who deferred VAT payments last year can now join the new online VAT Deferral Payment Scheme;
Those who deferred VAT payment between March and June 2020 will now be given the option to pay their deferred VAT in equal consecutive monthly instalments;
Businesses will need to opt-in to the the scheme via the online service that opened on Monday 23 February.
In order to take advantage of the scheme, businesses will need to have deferred VAT payments between March and June 2020, under the the VAT Payment Deferral Scheme. They will now be given the option to pay their deferred VAT in equal consecutive monthly instalments from March 2021,
Businesses will need to opt-in to the VAT Deferral New Payment Scheme, and they can do this via the online service that opened on 23 February and closes on 21 June 2021.
This new payment scheme is part of a wider government package of support, worth more than £280 billion, which is helping protect millions of jobs and businesses, So far around £34 billion has been injected into the UK economy following the half a million businesses who deferred their VAT payment last year. The new payment scheme should continue to help the economy recover by enabling businesses, impacted by the pandemic, to manage their business cash flow at a critical time.
Payments can easily be set up via the new payment scheme portal. Businesses can spread their payments with two to eleven equal monthly instalments. interest free. Payments can start from March 2021 and the earlier that businesses opt-in, the more instalments are available to help spread the cost and provide further support.
Should you need further help or assistance in deferring your VAT, then please do not hesitate contact us.