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New deferred VAT payment scheme

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HMRC has updated its guidance on the payment of VAT deferred due to coronavirus to cover the new opt-in payment scheme that will run from early 2021. Businesses which deferred VAT between 20 March and 30 June 2020 will be able to:

  • pay the deferred VAT in full on or before 31 March 2021;
  • opt into the new payment scheme in 2021; or
  • contact HMRC for further help.

The online opt-in process for the new scheme will launch in early 2021, according to HMRC, and businesses must opt themselves in (rather than via an agent). Under the new scheme, instead of making full payment by the end of March 2021, businesses will be able to make up to 11 smaller monthly instalments, interest free. All instalments must be paid by the end of March 2022.

Issue: 1511
Categories: News