HM Revenue and Customs offered VAT payers the option to defer VAT payments between 20th March 2020 and 30th June 2020. VAT payers who still have outstanding VAT payments have the following options before 31st March 2021:
- Pay any deferred VAT payments in full by 31st March 2021
- Opt in to a new VAT payment scheme, which allows VAT payers to make between 2 and 11 monthly installments, interest free, between April 2021 and March 2022. All payments must be paid by the end of March 2022.
Note: the online opt-in process for the VAT payment scheme is due to open shortly.
Businesses wishing to take advantage of the VAT payment scheme must ensure they take the following steps:
- Create a Government Gateway account if they do not already have one. Click here to do this
- Submit outstanding VAT returns from the previous 4 years.
- Correct errors on VAT returns Click here for details on how to do this
- Identify how much VAT is owed, including the amount originally deferred during 2020 and how much has been paid
More information is available on the HM Treasury web page. Please click here.