For businesses that deferred VAT payments due between 20 March and 30 June 2020 the payment is due by 31 March 2021.  When HMRC set this repayment deadline no one thought that businesses would still be suffering from COVID-19 restrictions.  In recognition of continuing cashflow problems HMRC have announced an instalment payment regime.

The new scheme lets you pay your deferred VAT in equal monthly instalments, interest free. You can spread your payments across a number of months depending on when you join – the earlier you join, the more months you have to spread your payments across.

  • 11 instalments if you join by 19‌‌ ‌March
  • 10 instalments if you join by 21‌‌ ‌April
  • 9 instalments if you join by 19‌‌ ‌May
  • 8 instalments if you join by 21‌‌ ‌June.

You can join the scheme quickly and simply online without the need to call HMRC.  You will need to set up a company gateway account (you may have already done this to re-instate your VAT direct debits).  Once you have done this, follow the link to HMRCAs tax agents we cannot do this for you

The online service will close on 21‌‌ ‌June 2021 – if you want to join the scheme online, you must do so before this date.

If you have a Time to Pay arrangement already in place for your deferred VAT you cannot use the online scheme and so you would need to contact HMRC to amend your Time to Pay arrangement.

If you have any questions then please contact Clearways Accountants