As outlined in our article of 26 March, businesses that took advantage of HMRC’s deferred VAT payment scheme between 20 March 2020 and 30 June 2020, and still have payments to make, are being offered the ability to defer for a further period, spreading payment over a number of months.

The final deadline for applications to this “VAT deferral new payment scheme” is now less than a month away, closing on 21 June 2021. Those who do not choose to sign up for the scheme must pay in full by 30 June or contact HMRC by 30 June to make an arrangement to pay; failing to do so with leave the business liable to a 5% penalty and/or interest.

Applications made after 19 May and until 21 June 2021 may request to spread payments over a maximum of eight monthly instalments, paid by Direct Debit.

For further details of the scheme and to submit an application via the Government Gateway, please refer to the GOV.UK website, here (link).