VAT Deferral New Payment Scheme

Businesses can now take advantage of the VAT Deferral New Payment Scheme. It will allow them to pay the deferred VAT from last year in equal monthly instalments, with no interest, starting from March 2021.

Businesses will be able to choose between 2 and 11 instalments, subject to when they join the new scheme. In order to qualify for 11 instalments, you will have to join by 19 March 2021. The first payment will have to be paid when you join and the Direct Debit will need to be set up for the rest.

The online service opened yesterday and businesses will be able to join until 21 June 2021.

Alternatively, you can pay the deferred VAT in full by 31 March 2021 or contact the HMRC should you need additional help.

To find out more about the details of the new Scheme and how to join please see government guidance.

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