VAT deferral payment scheme

VAT deferral payment scheme

The VAT deferral payment scheme is now open.  It applies to all businesses that deferred paying VAT due between the 20th of March and 30‌‌th of June‌‌ 2020 and have been unable to pay in full by the 31st of March‌‌ ‌2021.

You can apply now to spread these payments over a number of months. The sooner businesses join, the more instalments are available to them.

Businesses can join the scheme quickly and simply and need to apply by the 21‌‌‌‌st of ‌June‌‌‌‌‌‌ 2021 at the latest.

Instalment options available to you

When you decide to join the scheme will determine the maximum number of instalments that are available to you.

The following table sets out the monthly joining deadlines (to allow for Direct Debit processing) and the corresponding number of maximum instalments (including the first payment):

If you join by Number of instalments available to you
19th of May 2021 9
21st of June 2021 8

How to Join the VAT deferral payment scheme

Before joining, you must:

  • have your VAT registration number
  • create your own Government Gateway account (if you do not already have one)
  • submit any outstanding VAT returns from the last 4 years – otherwise you’ll not be able to join the scheme
  • correct errors on your VAT returns as soon as possible
  • make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid

To use the online service, you must:

  • join the scheme yourself (I cannot do this for you)
  • still have deferred VAT to pay
  • be up to date with your VAT returns
  • join by the 21st of June 2021
  • pay the first instalment when you join
  • pay your instalments by Direct Debit (if you want to use the scheme but cannot pay by Direct Debit, there’s an alternative entry route for you)

If you cannot use the online service

There may be circumstances where you cannot use the online service, for example if you:

  • do not have a UK bank account
  • cannot pay by Direct Debit
  • have dual signatories on your account

If you want to join the new payment scheme, but cannot use the online service, contact the COVID-19 helpline 0800 024 1222. An adviser will help you join.

Help and support with the VAT deferral payment scheme

If you need help with the VAT deferral payment scheme or any aspect of your VAT contact me now.

Contact me now if you need help with Making Tax Digital