Businesses who had a VAT liability that fell due between 20th March 2020 and 30th June 2020 were able to defer payment until March 2021. This deadline for payment has now been extended again, giving small businesses an opportunity to hold on to that cash for a longer period.
As part of the Government’s Coronavirus support measures, the VAT Deferral Payment Scheme has been launched.
This allows businesses to spread the payment of this VAT amount across up to 11 smaller payments. The option to spread the payments is also interest free, as long as all payments are made before 31st March 2022.
To use the scheme, businesses will need to set up a Direct Debit in favour of HMRC as part of an online process. As a result, we are unable to do this on your behalf.
The details of the scheme are yet to be finalised, in terms of the exact process, so as soon as they are announced by HMRC we’ll let you know!
Alternatively, you can watch gov.uk for extra details, by searching for ‘Pay VAT deferred due to Coronavirus.’