ANNOUNCED by the Chancellor in the Winter Economy Plan the new payment scheme allows businesses that deferred VAT payments between 20 March and 30 June 2020, under the VAT Payment Deferral Scheme, to opt-in and pay their deferred VAT by smaller consecutive monthly instalments, interest free.
The online service opened today (23 February) and closes on 21 June 2021.
The earlier businesses opt-in the more instalments are available to help spread the cost.
Businesses that do not wish to opt-in to the scheme can pay their deferred VAT on or before 31 March 2021.
Further details can be found in HMRC’s news release and online in Gov.uk guidance.
Jesse Norman, Financial Secretary to the Treasury, said:
“The Government has provided a package of support worth over £280bn during the pandemic to help protect millions of jobs and businesses.
“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.”
Pic. Chris McAndrew, CC BY 3.0 <https://creativecommons.org/licenses/by/3.0>, via Wikimedia Commons
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