New HMRC scheme allows businesses to pay deferred VAT in instalments - EasternEye

New HMRC scheme allows businesses to pay deferred VAT in instalments

Photo: iStock
Photo: iStock

HM Revenue & Customs (HMRC) on Tuesday(23) launched a new scheme to support over half a million businesses who have deferred VAT payments last year.

The businesses can now join the new online VAT Deferral New Payment Scheme to pay it in smaller monthly instalments from March, enabling them to manage their business cash flow at a critical time.

The scheme will be open for those businesses that have deferred VAT payments between March and June 2020, under the VAT Payment Deferral Scheme. They will need to opt-in to the scheme via the online service started on Tuesday and closes on 21 June.

“The government has provided a package of support worth over £280 billion during the pandemic to help protect millions of jobs and businesses. This now includes the VAT Deferral New Payment Scheme, which will help provide businesses with the breathing space they may need to manage their cashflows in the weeks and months ahead,” said Jesse Norman, financial secretary to the Treasury.

Payments can be set up via the new payment scheme portal in two to 11 equal monthly instalments, interest free. The earlier businesses opt-in the more instalments are available to help spread the cost.

Eligible businesses that are unable to use online services can call the helpline on 0800 024 1222 to join the scheme until 30 June.

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