Businesses can further defer VAT payments by opting into new payment scheme

Last year, the government automatically deferred VAT payments for businesses between 20th March 2020 and 30th June 2020, during the coronavirus pandemic. The VAT payments were deferred until 31st March 2021 however, businesses do not need to pay the full amount by the end of March, instead they can opt into a new payment scheme that allows them to spread their repayments.

HMRC has confirmed that businesses can sign up to the scheme online between 23rd February 2021 and 21st June 2021.

The scheme allows for businesses to make smaller monthly instalments, interest free. Businesses can determine the number of equal monthly instalments they wish to pay however, all instalments must be paid by the end of March 2022. The first payment is due when signing up for the scheme.

The sign-up date determines the maximum number of instalments that will be available. Therefore, signing up too late will result in a reduced number of instalments available for repayment.

Further information can be found on the government website.

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Emily Dodds

Emily Dodds

Marketing and Business Development Officer

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