New VAT deferral payment scheme opens
By Matt Hall | 23rd February 2021
More than half a million businesses who deferred VAT payments last year can now join the new online VAT Deferral New Payment Scheme to pay it in smaller monthly instalments, HMRC has announced today.
In order to take advantage of the new payment scheme businesses will need to have deferred VAT payments between March and June 2020, under the VAT Payment Deferral Scheme.
They will now be given the option to pay their deferred VAT in equal consecutive monthly instalments from March 2021.
Businesses will need to opt-in to the VAT Deferral New Payment Scheme. They can do this via the online service that opens on February 23 and closes on June 21, 2021.
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."
Payments can easily be set up via the new payment scheme portal and businesses can spread their payments with two to 11 equal monthly instalments, interest free. They can start from March 2021 and the earlier businesses opt-in the more instalments are available to help spread the cost and provide further support.
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