VAT Deferral New Payment Scheme now open for registrations
Her Majesty’s Revenue and Customs (HMRC) has opened its new online VAT Deferral New Payment Scheme for businesses that deferred payments last and looking to pay in smaller monthly instalments.
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, HMRC said.
Businesses will now be given the option to pay their deferred VAT in equal consecutive monthly instalments from March 2021.
They will need to opt-in to the VAT Deferral New Payment Scheme, and can do this via the online service that opens on 23 February and closes on 21 June 2021.
Payments can easily be set up via the new payment scheme portal, where businesses can spread their payments with two 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.
The new payment scheme is part of a wider government package of support, worth more than £280 billion, which is helping to protect millions of jobs and businesses.
So far around £34 billion has been injected into the UK economy following the half a million businesses who deferred their VAT payment last year.
“The government has provided a package of support worth over £280bn during the pandemic to help protect millions of jobs and businesses,” said Financial Secretary to the Treasury Jesse Norman.
“This now includes the VAT Deferral New Payment Scheme, which will help provide businesses with the breathing space they may need to manage their cashflows in the weeks and months ahead.”