Over half a million businesses that deferred VAT payments last year can now join the new online VAT Deferral New Payment Scheme to pay it in smaller monthly instalments, HMRC has announced.
In order to take advantage of the new payment scheme businesses will need to have deferred VAT payments between March and June 2020 under the VAT Payment Deferral Scheme. They will now be given the option to pay their deferred VAT in equal consecutive monthly instalments from March 2021.
Businesses will need to opt-in to the VAT Deferral New Payment Scheme. They can do this via the online service that opens on 23 February 2021 and closes on 21 June 2021.
Payments can be set up through the new payment scheme portal.
Businesses can spread their payments with 2 to 11 equal monthly instalments, 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.
Eligible businesses that are unable to use HMRC online services can ring the HMRC Coronavirus Helpline on 0800 024 1222 to join the scheme until 30 June 2021.