What is it?
Businesses that deferred VAT due in March to June 2020 will be given more breathing space through the New Payment Scheme, which gives them the option to pay back in smaller instalments. Rather than paying a lump sum in full at the end March next year, they will be able to make 11 smaller interest-free payments during the 2021-22 financial year. All businesses that took advantage of the VAT deferral can use the new payment scheme. Businesses will need to opt-in, but all are eligible. For the self-employed, they will be able to benefit from a separate additional 12-month extension from HMRC on the “Time to Pay” self-service facility, meaning payments deferred from July 2020, and those due in January 2021, will now not need to be paid until January 2022.
Am I eligible?
All UK businesses are eligible.
What do I need to do to access it?
This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period.
VAT returns should be filed as usual. In order to ensure payments are not taken automatically, direct debits should be cancelled. VAT refunds and reclaims will be paid by the government as normal.
Who do I need to speak to?
This is an automatic offer with no applications required.