.png)
.png)
HMRC has updated the guidance on the payment of VAT deferred due to the Covid-19 pandemic giving information about a new payment scheme that will be available in 2021.
Businesses that still have to pay the VAT that they deferred between 20 March and 30 June 2020 will be able to opt into the new scheme if they are unable to pay the full amount by 31 March 2021. The online opt-in process will be available in early 2021. Businesses must opt in themselves – their agent cannot do this for them.
The scheme allows the business to make up to 11 monthly instalments, interest free. All instalments must be paid by the end of March 2022.
To use this scheme the business must have deferred VAT to pay, be up to date with its VAT returns and be able to pay by direct debit.
Opting into the scheme will not affect other time-to-pay arrangements.
