HMRC VAT Deferment

If you previously deferred your VAT between 20 March and 20 June 2020 (under the Covid-19 deferment) then this liability falls due on 31st March 2021

If you are now able to meet this liability then you should just make payment using the usual channels. 

However, if you are unable to meet this liability in full, HMRC offers a payment plan through their new payment scheme. This is interest-free and allows you to select a repayment period between 2 and 11 months. Full details can be found here

This VAT deferral payment scheme is now open and will remain open until 21 June 2021.

Whilst you can select a repayment period between 2 and 11 months, the number of instalments also depends on when you join the new payment scheme. If you join the scheme by 19th March you will be able to make 11 instalments but if you join by 21st June you will only be able to make 8 instalments. 

It is important to note that instalments will be taken by direct debit, the first one when you join the scheme. 

Also importantly, you must apply for this as a Company online, agents are unable to process this for you. Therefore the company must hold a government gateway. 

It’s not too late to register for a government gateway, but we recommend that this is now carried out as a matter of urgency.

In order to register for a government gateway – 

  1. Follow this link 
  2. Click sign in 
  3. Then click the create sign in details (this is where you can also recover gateway ID’s if you have forgotten the password or ID)

If you need any additional assistance, please get in touch.