UK businesses that deferred VAT payments last year due to the impact of the coronavirus pandemic can now join a new scheme to pay it in smaller monthly instalments.
Through the HMRC’s new VAT Deferral New Payment Scheme, businesses that deferred VAT payments between March and June 2020 under the VAT Payment Deferral Scheme now have the option to pay their deferred VAT in equal consecutive monthly instalments from March 2021.
Businesses will need to opt-in to the new scheme and set up the payments via an online service, which is open now until 21 June 2021 —payments can be spread across two to 11 equal monthly instalments, which are interest-free.
Payments can start from March 2021, and the earlier businesses opt-in, the more instalments are available to help spread the cost and provide further support.
For more information, and to join the VAT Deferral New Payment Scheme, visit imagesmag.uk/VAT-deferral-2021. Eligible businesses that are unable to use the online services can ring the HMRC Coronavirus Helpline on 0800 024 1222.