New scheme for repaying VAT deferred in 2020 due to Coronavirus

Hillier Hopkins LLP

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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.

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Ruth Corkin

Ruth has been involved with VAT for over 30 years. She started her VAT career as a Customs and Excise Officer in Essex and then moved into consultancy with a variety of well-known accountancy firms. She is well known in the VAT world and is the proud author of many articles and technical works.

Contact Ruth at ruth.corkin@hhllp.co.uk or on 01908 713 860