• Foxmain Associates

UPDATE - Deferred VAT payment scheme


HMRC have announced that if you have deferred VAT, your payments due between 20 March and 30 June 2020 and still have payments to make, you can join the VAT deferral payment scheme.


This is an online service that will available between 23 February 2021 and 21 June 2021. The portal for accessing this service is not yet available, but further information can be found about the scheme here.


This new scheme, for which you will need to apply, allows you to pay your deferred VAT in equal instalments, interest free, and choose the number of instalments to be made.


The number of instalments range from two to eleven, dependent on when you join the payment scheme.


So if you join the scheme by 19 March 2021, you will be able to repay the amount due over eleven instalments, however if you leave it to the last minute and sign up to the scheme by 21 June 2021, then you will only be able to repay the deferred amount over eight instalments.


To use the online service, you must join the scheme yourself we as your agent, are unable to do this for you. In order to be eligible for the scheme, you must also be up to date with your VAT returns. The last date for joining the scheme is 21 June 2021. Your first instalment will be due on the date you join the scheme, and the remaining instalments will be collected by Direct Debit.


We will update this link when the portal goes live.

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