Businesses with VAT bills can sign up to scheme

Businesses that deferred VAT payments last year have one month left to sign up to pay in monthly instalments under the VAT Deferral New Payment Scheme.

The online portal for the new payment scheme closes on June 21.

Over 500,000 businesses deferred £34billion in VAT payments due between March and June 2020 under the VAT Payment Deferral Scheme.

Businesses had until March 31 to pay this deferred VAT or, if they could not afford to do so, they could go online from February 23 to set up a new payment scheme and pay by monthly instalments to spread the cost.

Jim Harra, HMRC’s chief executive, said: “Businesses in Scotland that deferred paying their VAT last spring have until June 21 to join the VAT Deferral New Payment Scheme online.

“They should act now to avoid missing out on this opportunity to spread payment of their deferred VAT across monthly, interest-free, instalments.

“The new payment scheme is part of the government package of support worth over £350 billion to help protect millions of jobs and businesses during the pandemic and as we emerge on the path to recovery.

“HMRC will continue to do all we can to help businesses as they reopen and rebuild.”

The March, April and May joining dates have passed, but businesses can still spread their payments across up to eight equal monthly instalments, interest-free, if they join before the deadline. Payments can be set up via the scheme’s portal.

Call the HMRC Coronavirus Helpline on 0800 024 1222 to join the scheme.