Overview
HMRC recently provided an update of their VAT deferral scheme. This note summarises HMRC’s guidance, You can read the guidance in full here.
The VAT deferral scheme
Basically, if you deferred VAT payments at the start of COVID (between 20 March and 30 June 2020) and you still have payments to make, you can join the new deferral scheme. If you want to join the scheme you need to enrol between 23 February and 21 June 2021. The new scheme lets you:
- pay your deferred VAT in equal instalments, interest free
- choose the number of instalments, from 2 to 11 (depending on when you join)
Repayment schedule for COVID VAT deferrals
The month you join the scheme determines the maximum number of instalments that are available to you. The table below shows the monthly joining deadlines and the corresponding maximum number of instalments (including the first payment):
| If you join by: | Number of instalments available to you: |
| 19 March 2021 | 11 |
| 21 April 2021 | 10 |
| 19 May 2021 | 9 |
| 21 June 2021 | 8 |
Conditions of use of the COVID VAT deferral scheme
To use the online service, you need to join the scheme through your Government Gateway account (ask us if you don’t have the details). The conditions for the scheme are that you need to be up to date with your VAT returns and pay your instalments by Direct Debit. Businesses that don’t have a direct debit or a UK bank account should call HMRC’s COVID-19 helpline on 0800 024 1222.
If you need our assistance
We will of course be pleased to help you apply.
Overview HMRC recently provided an update of their VAT […]