Taxpayers were permitted to defer any VAT return payments due to HMRC between 20 March and 30 June 2020 due to the COVID-19 pandemic.
HMRC requires the balance to be repaid in full by 31 March 2021, or the taxpayer needs to sign up to its VAT deferral new payment scheme by the same date.
HMRC has announced that if the taxpayer does not pay in full by 31 March 2021, it now only has to have joined the VAT deferral new payment scheme by 21 June 2021 – an extension period of nearly three months with no interest or penalty if signed up by the new deadline. The sign-up portal opens on 23 February.
Please note if the taxpayer signs up for the deferral payment scheme later in the sign up window, it reduces the number of instalments available for repayment:
|If you join by:||Number of instalments available to you:|
|19 March 2021||11|
|21 April 2021||10|
|19 May 2021||9|
|21 June 2021||8|