February 24 2021

United Kingdom Outlines New Payment Scheme for Deferred VAT Payments

Source: IBFD Tax Research Platform News

On 23 February 2021, HM Revenue & Customs (HMRC) updated its guidance with information about the opening of the new payment scheme for value added tax (VAT) deferred between 20 March 2020 and 30 June 2020. The scheme is open from 23 February 2021 to 21 June 2021. The scheme allows payment of the deferred VAT to be made in equal interest-free instalments. A link to join the scheme is provided within the guidance, which needs to be read before applying to join the scheme.

Applications to use the scheme can only be made by the relevant business.

Businesses using either the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme will be invited to join the new payment scheme in March 2021.