The online portal for the new VAT payment scheme closes on 21 June 2021.
Over half a million businesses deferred £34 billion in VAT payments due between March and June 2020 under the VAT Payment Deferral Scheme. Businesses had until 31 March 2021 to pay this deferred VAT or, if they could not afford to do so, they could go online from 23 February to set up a new payment scheme and pay by monthly instalments to spread the cost.
The VAT Deferral New Payment Scheme means businesses can now manage their cashflow by paying their deferred VAT more gradually.
The March, April and May joining dates have passed, but businesses can still spread their payments across up to eight equal monthly instalments, interest-free, if they join by 21 June 2021. Payments can easily be set up via the VAT Deferral New Payment Scheme portal.
Eligible businesses that are unable to use the online service by 21 June 2021, can call the HMRC Coronavirus Helpline on 0800 024 1222 to join the scheme until 30 June 2021.
Businesses may be charged a 5% penalty and/or interest if they do not join up to the scheme online by 21 June, or pay in full by 30 June, or contact HMRC to arrange to pay by 30 June 2021.
Businesses should also contact HMRC by 30 June 2021 if they need to agree extra help to pay.
Businesses can pay their deferred VAT in 2 to 8 consecutive instalments without adding interest if they join online by 21 June 2021. The first payment is made when they join.
The joining stage is slightly longer for those unable to use the online service due to the way payments are processed.