Just one month till deadline to join VAT Deferral New Payment Scheme

HM Revenue and Customs is calling on businesses to act now to join the VAT Deferral New Payment Scheme, with just one month to go before the online portal closes on 21 June 2021.

It has already proved a popular resource for businesses to spread payment of their deferred VAT across monthly interest-free instalments.

Between March and June 2020, more than half a million businesses deferred £34 billion in VAT payments under the VAT Payment Deferral Scheme.

Businesses had until 31 March 2021 to pay this deferred VAT or, if they were struggling to pay it, they could use the online portal from 23 February to set up a new payment scheme, and pay by monthly instalments to spread out the cost.

HMRC chief executive Jim Harra said there is limited time left to join the scheme, so don’t delay, to take up the deferred payments option.

“The new payment scheme is part of the government package of support worth over £350 billion to help protect millions of jobs and businesses during the pandemic and as we emerge on the path to recovery,” said Mr Harra.

“HMRC will continue to do all we can to help businesses as they reopen and rebuild.”

Financial Secretary to the Treasury Jesse Norman said thanks to the government, the VAT Deferral New Payment Scheme has provided support to businesses at a critical time, protecting millions of jobs and businesses during the pandemic, and putting £34 billion into the UK economy.

“The VAT Deferral New Payment Scheme means businesses can now manage their cashflow by paying their deferred VAT more gradually, continuing to protect jobs across the UK as we emerge from the pandemic and build back better,” said Mr Norman.

Source: Financial Accountant click here to read more