Any businesses who has taken advantage of the VAT deferral earlier this year have been given the option to make smaller monthly payments instead of paying off in one go.
Choosing this option would result in making 11 equal instalments between April 2021 and March 2022 without being charged interest.
The payment that can be spread is for VAT that was due for VAT periods ending between March to June 2020. The government first announced this deferral in March 2020 and had told us that payment would be due by 31 March 2021. The winter statement gives businesses an extra year to pay this bill off in full.
For more information please see the Government’s Winter Economy Plan