Deferred VAT Payments

Charlotte Allen
January 25, 2021

HMRC have confirmed that they you will now be able to delay VAT payments a little longer with their new scheme.

If you had VAT payments due between 20th‌‌ ‌March and 30th ‌June 2020, these are deferred until 31‌‌ ‌March 2021.

You can pay this VAT in 2 ways:

  • pay in full on or before 31‌‌ ‌March 2021
  • opt in to a new scheme that allows you to pay in instalments, until January ‌2022.

To pay now

If you can pay in full before 31st‌‌ ‌March 2021, please do. You’ll find everything you need online:

  • go to GOV.‌‌‌UK and search 'paying VAT'
  • choose 'pay your VAT bill' and follow the instructions – please make sure you use the right reference.

To see details of the amount you owe, please go to GOV‌‌‌.UK and search 'Business Tax Account'.

To sign in you’ll need your Government Gateway user ID and password. If you don't have an ID and password, you can create them as part of this process. You can also retrieve a forgotten user ID or password.

To pay in instalments using the new payment scheme

The new scheme will allow you to pay your deferred VAT in up to 11 regular monthly instalments, interest free, beginning in March 2021.

The scheme is not available to use yet, but you can find more about how it works, and get ready to use it, by going to GOV.UK and searching 'deferred VAT'.

If you have any questions or we can help you with any COVID-19 business support please get in touch. Email the team or call 01858 289 189. You can also refer to our COVID-19 support page.

Thanks for stopping by,

Charlotte & The Business Hut Team

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