AI Deferred VAT

With VAT deferral coming to an end,  HMRC have finally released information on bringing this VAT up to date. There are three options, you can choose to either:

  1. Pay the deferred VAT in full before 31 March 2021.
  2. Join the new VAT deferral payment scheme which is an online service that you must opt into. No interest is payable and full payment will need to be made before the service ends on 21 June 2020 (see more info below).
  3. Contact HMRC on Telephone: 0800 024 1222 by 30 June 2021 if you need extra help to pay.

The New VAT Deferral Scheme

This allows you to:

  • Pay your deferred VAT in instalments without adding interest.
  • Select the number of instalments from 8 to 11 equal monthly payments. You must join the new scheme by 19 March 2021 to take advantage of 11 instalments.

To use this new scheme, you must:

  • Still have deferred VAT to pay.
  • Be up to date with your VAT returns.
  • Opt in before the end of March 2021.
  • Pay the first instalment when you opt in.

If you opt into the scheme, you can still have time to pay for other HMRC debts and outstanding tax.

Get ready to opt into the new VAT deferral scheme

Before opting in you must:

  • Have your Government Gateway account login details to hand. If you do not already have an account, you will need to set one up
  • Submit any outstanding VAT returns from the last four years. You will not be able to join the scheme if you have not done so.
  • Correct errors on your VAT returns as soon as possible.
  • Make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid.

You should also:

  • Pay what you can as soon as possible to allow us to show the correct deferred VAT balance.
  • Consider the number of equal instalments you’ll need, from 2 to 11 months.