If you deferred your VAT payments between 20 March and 30 June 2020 then you need to read the guidance issued by the HMRC which explains how to make payments. The detailed process can be found on – Pay VAT deferred due to coronavirus (COVID-19).
We have summarised below a few key points that will help you understand the next steps for your business.
You have two options that you could choose from if you deferred your VAT payment:
- You can pay the full amount deferred on or before 31 March 2021.
- You can make payments via the new payment scheme which is being set up.
To make your payment in full click here – Pay your deferred VAT
New payment scheme for deferred VAT
The new payment scheme will be announced soon, we will let you know as soon as we hear that it goes live. The payment scheme allows you to select the number of monthly instalments you want to make. The maximum number of instalments is eleven so that you clear this payment within a year.
You need to opt in to use this payment scheme before the end of March 2021. When setting up the payment plan be ready to pay the first instalment on this date. In order to apply for the scheme, you must be up to date with all your VAT returns.
If you discover an error in a VAT return where the payment was deferred in the period from 20 March and 30 June 2020, you should follow the normal process for correcting the return. You need to complete the form VAT652 and send this to the VAT error correction team as soon as possible.
If you need any further advice able VAT or the new payment scheme please do contact us.
You can call 01623 490 120 or email