HMRC have advised that that if you can afford to pay your VAT from 2020 which was deferred due to the pandemic, you should.
They confirmed yesterday that the deferred amount will not be taken in one lump by direct debit if you have one set up. Therefore, you will need to make your payment by other means by 31 March if you are not going to use the new extended payment scheme.
For the new extended payment scheme, you will have to apply online and set up a new direct debit. If you sign up in February and March, there will be a maximum number of 11 instalments, but if you wait until June to sign up, the maximum number of instalments available will be 8.
Click here for further guidance on this and if you have any concerns, please get in touch on 0330 024 3200 or hi@hhllp.co.uk, our VAT team are happy to help.
