VAT Deferral
The VAT deferral new payment scheme is open for all businesses who deferred paying VAT due between 20 March and 30 June 2020 and were unable to pay in full by 31 March 2021.
21 June is the last day you can join this scheme. If you join by this date you can apply to spread these payments across up to eight instalments.
You can join the scheme quickly and simply online without the need to call HMRC. Click here to find out more information, including the things you need to do before joining.
If you have deferred paying VAT, you may be charged a 5% penalty and/or interest if you do not join the VAT deferral new payment scheme by the deadline of 21 June, pay in full by 30 June, or get in touch with us to make an alternative arrangement to pay by 30 June 2021.
If you have a Time to Pay arrangement already in place for your deferred VAT, you cannot use the online scheme. If you need to amend your Time to Pay arrangement, contact HMRC to do this.
Self Assessment Self-Serve Time To Pay Scheme
The online self-serve ‘Time to Pay’ service has been increased to £30,000 for Self Assessment customers, in response to the coronavirus pandemic.
Once you have a completed tax return for the 2019-20 tax year, the online self-serve ‘Time to Pay’ through GOV.UK can be used to set up a direct debit and pay any tax that is owed in monthly instalments, up to a 12-month period.
If you wish to set up your own self-serve ‘Time to Pay’, you must meet the following requirements:
- no outstanding tax returns
- no other tax debts
- no other HMRC payments set up
- your Self Assessment tax bill is between £32 and £30,000
- it is no more than 60 days since the tax was due for payment.
If you do not meet these requirements, you might still qualify for Time to Pay, but HMRC will need to be called to set this up.
If you set up a ‘Time to Pay’ arrangement, you will have to pay interest on the tax paid late. Interest will be applied to any outstanding balance from 1 February 2021.
HMRC tax helpline
HMRC has a helpline set up for any business or self-employed individual who is concerned about paying their tax due to Covid-19 to get practical help and advice: 0800 0159 559
The helpline is open from Monday to Friday 8am to 8pm, and Saturday 8am to 4pm (excluding bank holidays).
Other HMRC business payment support contact details can be found here
