HMRC launches VAT deferral payment scheme

Last year the government announced that any VAT payments due between 20 March and 30 June 2020 could be deferred in full until 31 March 2021.

It was recently announced that these deferred payments which would have been previously due at the end of March can now be further deferred and the payments spread over up to 12 months interest-free.

HMRC launched the new VAT deferral payment scheme on 23 February 2021 and it is now open for applications until 21 June 2021.

In order to apply for the scheme, you must have an online government gateway account and be up to date with your VAT returns. You must also correct any errors on the affected returns before you make an application for the VAT deferral payment scheme.

Unfortunately, agents cannot join the scheme on a business’ behalf so it is up to the business’ themselves to join the scheme.

Full details on how to join the VAT Deferral Scheme.