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June deadlines for the Covid related VAT deferral payment scheme

June deadlines for the Covid related VAT deferral payment scheme

Mike Wakeford

If you do not set up a payment plan or pay your liability in full, you may be charged a 5% penalty or interest by HMRC. To avoid this, you can either join the new payment scheme before the deadline of 21 June 2021 or pay off your deferred VAT in full by 30 June 2021

By joining the payment scheme you can spread your payments across eight equal monthly instalments, interest-free. 

To be eligible to join, you must meet the below criteria:
  • Have access to your VAT registration number
  • Have a Government Gateway account (or be able to create one)
  • Submit any outstanding VAT returns from the last 4 years 
  • Correct errors on your VAT returns as soon as possible
  • Make sure you know how much liability you owe, including the amount you originally deferred and how much you may have already paid
To join the online service, you must:
  • Join the scheme yourself, your agent cannot do this for you
  • Have deferred VAT to pay
  • Be up to date with your VAT returns
  • Join by 21 June 2021
  • Be able to pay the first instalment when you join
  • Pay your instalments by Direct Debit (if you want to use the scheme but cannot pay by Direct Debit, there is an alternative entry route)
The government has released guidance on how to join the scheme here. If you wish to join the scheme before 21 June 2021 you can do so by clicking here.

If you wish to pay in full by 30 June 2021 you can do so here: Pay your VAT bill

If you require additional assistance in order to pay, you can contact HMRC however this must be done before 30 June 2021.

If you require guidance with the above please contact a member of our tax team.