25 Feb 2021
HMRC have opened its new online VAT Deferral New Payment Scheme for registration as of 23rd February 2021.
This means that over half a million businesses that deferred VAT payments between March and June 2020 are eligible to join the scheme to pay it in smaller monthly instalments.These businesses will now be given the option to pay their deferred VAT in equal consecutive monthly instalments from March 2021.
To take advantage of the scheme, businesses will need to opt-in to the VAT Deferral New Payment Scheme online, where they’ll be able to spread their repayments between two and 11 equal monthly interest free payments. This can be done until the service closes on 21 June 2021. Alternatively, eligible businesses can also ring the HMRC Coronavirus Helpline on 0800 024 1222 to join the scheme until 30 June 2021.
Payments can start from March and the earlier businesses opt-in the more monthly instalments are available to them to help spread the cost and provide additional support.
This new VAT deferral payment scheme is part of the government’s wider business support packages worth more than £280bn.
Not eligible for the new HMRC scheme but still need help financing your VAT bill? Find out how Funding Options can help your business here.