DEFERRED VAT PAYMENTS DUE TO CORONAVIRUS (COVID-19)

If your VAT payments were deferred in the period 20 March – June 2020 you can do one of the following:

  1. Pay the deferred VAT in full on or before 31 March 2021
  2. Opt-in to the VAT deferral payment scheme
  3. Contact HMRC if you need more time to pay

If you would like to opt in to the VAT deferral scheme you will be able to pay deferred VAT in instalments from two to 11 equal monthly statements, without added interest.  In order to be eligible for this arrangement you should:

  • Still have deferred VAT to pay
  • Be up to date with VAT returns
  • Opt in and pay the first instalment by end of March 2021
  • Be able to pay the deferred VAT by Direct Debit

In order to prepare for the payment scheme you must

  • Create your own Government Gateway (if you haven’t done so already)
  • Submit any outstanding VAT returns from the last 4 years
  • Correct any errors on your VAT returns as soon as possible
  • Make sure you know how much you already owe

For full information and guidance on VAT payments please see GOV.UK

To discuss your individual circumstances with one of our team, please contact us as soon as possible.