April 13, 2021: Wheelers Words

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April 13, 20201 | VAT Referral Update

HMRC have started sending out letters regarding deferred VAT which has not been paid and where action has not been taken.

If you deferred VAT payments between March and June 2020, this deferred amount was due for payment by 31 March 2021.  Action is now needed. HMRC have given taxpayers the following options with respect to deferred VAT:

  • pay the deferred VAT in full, this was due on or before 31 March 2021. Details of how to pay can be on the following link:  https://www.gov.uk/pay-vat (please note your VAT registration number should be used as the reference number when making payment) 
  • join the VAT deferral new payment scheme to spread the payments – the online service is open between 23 February 2021 and 21 June 2021 (see instructions below)
  • contact HMRC by Telephone: 0800 024 1222 by 30 June 2021 if you need extra help to pay.

If you opt into the VAT deferral new payment scheme, the new scheme allows you to:

  • pay your deferred VAT in equal instalments, interest free.
  • choose the number of instalments, from 2 to 11 (depending on when you join)

The month you decide to join the scheme will determine the maximum number of instalments that are available to you.

The table below sets out the monthly joining deadlines (to allow for Direct Debit processing) and the corresponding number of maximum instalments (including the first payment):

If you join by:                     Number of instalments available to you:

21 April 2021                      10

19 May 2021                       9

21 June 2021                      8

To join this scheme, you will need to use your Government Gateway account and follow the steps to set this up. If you do not have a Government Gateway account, you can set one up. You will also need to ensure you have the amount of VAT deferred to hand. Unfortunately, we are unable to set this up as agent. If you wish to join this scheme, please open the link below and press ‘join the scheme now’, you will then be prompted to sign into your Government Gateway account or set one up:

https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

If you need any further assistance, please do not hesitate to get in touch with your Wheelers contact.