HM Revenue and Customs (HMRC) has today (23 February) announced that over half a million businesses who deferred VAT payments last year can now pay in smaller monthly instalments using the new online VAT Deferral New Payment Scheme.
To take advantage o 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 have 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 online from today and will close on 21 June 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 be set up using the new payment scheme portal. Spread your payments in 2 – 11 months equal instalments, interest free.