HMRC has announced businesses that deferred VAT payments last year can now pay them back in smaller monthly instalments under its new online VAT deferral new payment scheme.
In order to take advantage of the scheme, businesses will need to have deferred VAT payments between March and June 2020.
Those businesses which deferred their VAT will be given the option to pay in equal consecutive monthly instalments from March 2021.
HMRC reported over a half a million businesses deferred VAT payments last year, as a result of the COVID-19 pandemic.
Jesse Norman, financial secretary to the Treasury, said:
“The Government has provided a package of support worth over £280 billion during the pandemic to help protect millions of jobs and businesses.
“This now includes the VAT deferral new payment scheme, which will help provide businesses with the breathing space they may need to manage their cashflows in the weeks and months ahead.”
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