Many business owners took advantage of the opportunity to defer VAT in 2020 as a result of the Government’s Covid-19 business relief. While we’re not out of the woods with lockdown just yet, it helps to know when you are required to make repayments, and how you can go about doing that.
The good news is there are two ways you can pay back your VAT, giving you a little leeway when it comes to cash flow.
- If you’re ready to pay in full, you can do so by 31st March 2021.
- If you’re not able to pay in full, you can join the VAT deferral new payment scheme, which allows you to pay your deferred VAT in installments by 21st June 2021.
- You want to pay your deferred VAT in full by 31st March 2021
- You want to pay in installments by 21 June 2021
- Either pay your deferred VAT in equal instalments, interest free
- Or, choose the number of instalments, from 2 to 11 (depending on when you join)
How to join the new scheme
- Your Government Gateway Account login details (if you don’t already have a Government Gateway Account you can create one up here)
- Any outstanding VAT returns from the last 4 years – you’ll need to submit these before you can join the scheme
- Know the amount of deferred VAT you owe, including the amount of any payments you’ve already made