COVID HMRC deferred VAT repayment scheme
If you deferred your VAT HMRC between 30 March and 20 June 2020 due to covid-19 HMRC has now issued a new scheme for repaying. This VAT was scheduled to fall due on 31 March 2021 but HMRC has now launched a new 2021 repayment scheme.
The 2020 deferment measure was offered to support businesses during the first wave of the coronavirus pandemic but as we are still in Lockdown this has had to be reassesed. HMRC has reported that this was provided to 2 million taxpayers who rolled over close to £34billion in VAT.
There are now two repayment options for taxpayers who deferred their VAT in 2020. Failure to choose either will result in interest and late penalties:
Pay the VAT by 31 March 2021; or
Join a new deferral scheme open between 23 February and 21 June 2021
New HMRC deferred payment scheme:
The new scheme lets taxpayers:
pay the deferred VAT in equal instalments, interest free
choose the number of instalments, from 2 to 11
To apply for the scheme taxpayers must:
join the scheme by logging in or setting up an HMRC Gateway account, unfortunately, we as agents cannot do this for you; https://www.gov.uk/log-in-register-hmrc-online-service
still have deferred 2020 VAT due
be up to date with their VAT returns
join by 21 June 2021
pay the first instalment when they join
pay instalments by Direct Debit - contact HMRC on 0800 024 1222 for alternatives.
This new Time to Pay arrangement will not change or affect any other Time to Pay arrangements for other HMRC debts and outstanding tax.
Comments