Did you defer your VAT payments between March and June 2020 under the VAT Payment Deferral Scheme as a result of the COVID pandemic?
If you did, then this VAT payment was due to be paid back by the 31st March 2021. HOWEVER, you now have the option to pay this deferred VAT back in equal consecutive monthly payments from March 2021. Businesses can spread the payments over 2 to 11 months, interest free! If you wish to spread over 11 months, you must join the scheme by 19th March 2021.
If you are interested in spreading these VAT payments then you need to opt-in to the ‘VAT Deferral New Payment scheme’ before the 21st June 2021. To opt-in you need to sign in to your government gateway and select this option within the VAT section to set up the payments. Please be aware that you will need your payment details to hand when joining the scheme. It will also not let you join if you are behind with any of your VAT returns.
Please note that if you are in the VAT Annual Accounting Scheme or the VAT Payment on Account scheme then you will not be able to opt in until after 10th March 2021.
