Extension to VAT Payments Deferred

By 19/02/2021News, VAT

If you deferred your VAT payments due between 20th March and 30th June 2020 and still have outstanding payments to make, you can join the new VAT deferral payment scheme which opens on 23rd February 2021.

VAT payments due between 20th March and 30th June 2020

If you have deferred your VAT payments between 20th March and 30th June and still have payments to make, you can either pay the deferred VAT in full no later than 31st March or you can join the new VAT deferral payment scheme.

Interest-free instalments

The online service opens on 23rd February and closes on 21st June 2021. The scheme lets your pay the outstanding VAT in equal instalments, interest free. The number of instalments allowed depends on when you join the scheme – between eleven and two instalments.

How to join the VAT deferral new payment scheme

You will have to join the scheme yourself; this can be done from your own Government Gateway account – we at DRG Chartered Accountants cannot do this on your behalf. To be eligible, you must:-

  • Still have deferred VAT to pay
  • Be up to date with your VAT returns
  • Join by 21 June 2021
  • Pay the first instalment when you join
  • Pay your instalments by Direct Debit

Penalties and interest

Remember, HMRC might charge interest or a penalty if you do not:-

  • Pay the deferred VAT in full by 31 March 2021
  • Join the new payment scheme by 21 June 2021
  • Agree extra help to pay with HMRC by 30 June 2021

Get in touch

Whilst we cannot, on your behalf, sign you up to the VAT deferral new payment scheme, please do get in touch with a member of the team if you have any questions about the scheme.

Further information

Gov.uk website: Pay VAT deferred due to coronavirus (COVID-19)