Time to Pay arrangements for VAT and Self Assessment

The Government recently announced Time to Pay arrangements in respect of deferred VAT payments and Self Assessment. Here’s a bit more detail.

VAT Deferral New Payment Scheme

If you deferred VAT payments that were due between the 20^th of March and the 30^th of June 2020, then these payments need to be made to HMRC by the 3‌1^st of‌‌ ‌‌March 2021.

Employers can now:

use the New VAT Deferral Payment Scheme to spread these payments over equal instalments up to the 3‌1^st of‌‌ ‌‌March 2022, or
make payments as normal by the 3‌1^st of‌‌ ‌‌March 2021, or
make Time To Pay arrangements with HMRC if you need more tailored support.

New Self Assessment Self-Serve Time To Pay Scheme

If you deferred paying your July 2020 Self Assessment Payment on Account, you will need to:

pay the deferred amount,
in addition to any balancing payment, and
first 2020/21 Payment on Account,

by the 3‌1^st of‌‌ ‌‌January 2021. This may be a larger payment than you usually pay in January.

If you are unable to pay your Self-Assessment (SA) bill in full by the 31^st of‌‌ January 2021, you can set up a Time to Pay payment plan of up to 12 months online without speaking to HMRC. If employers:

have SA tax debts of up to £30,000, they will be able to access this Time to Pay facility through GOV‌.UK and will get automatic and immediate approval.
have SA debts over £30,000, or they need longer than 12 months to repay their debt in full, they will still be able to use the Time to Pay arrangement by calling HMRC.