COVID-19 Update – 07 December – VAT deferred by businesses

Further information has been published by HMRC about the process for repaying deferred VAT by businesses in the first lockdown.

Businesses will have the opportunity to enter a scheme where they can make up to 11 monthly instalments, interest-free, with all instalments to be paid by the end of March 2022. There will be the option to select the number of instalments ranging from 2 to 11 equal monthly payments. Conditions for the scheme are as follows:

• You must still have deferred VAT to pay
• You must be up to date with your VAT returns
• You opt in before the end of March 2021
• You pay the first instalment before the end of March 2021
• You have the ability to pay the deferred VAT by Direct Debit

Opting into the scheme does not affect other time to pay arrangements for other HMRC debts and outstanding tax.

Find out more