HMRC has announced that the VAT deferral new payment scheme (for payment of VAT liabilities due between 20 March and 30 June 2020 that were deferred under the COVID-19 support arrangements) went live on 23 February. Instead of paying the full deferred VAT outstanding by 31 March 2021, businesses can now apply to spread what they owe over up to 11 smaller monthly payments from March.
The full HMRC press release is available here and more information on the scheme and how to join can be found at: www.gov.uk/hmrc/vat-deferral.
Please note that businesses wishing to join the scheme must opt in by 21 June 2021, and those that use the VAT Annual Accounting Scheme or are on the VAT Payment on Account Scheme will be invited to join the new payment scheme later in March 2021.
As the scheme will require a Direct Debit to be set up as part of the digital opt-in process, the application must be made by the authorised bank account holder – Hazlewoods, as agent, cannot apply on behalf of the business.