The VAT deferred instalment opt in process is not ready yet, although HMRC have issued further details in the last week on how this will work and what tax payers will need to have in place to be able to join the scheme. We have summarised the bullet points from this and there is a link below directing you to the full guidance note.
Scheme will allow clients to;
- Pay your deferred VAT in instalments without adding interest
- Select the number of instalments from 2 to 11 equal monthly payments
To use the scheme clients must;
- Still have deferred VAT to pay
- Be up to date with your VAT returns
- Opt in before the end of March 2021
- Pay the first instalment when you opt in
Clients will need to opt in, agents are not able to do this. Before opting you must;
- Create government gateway, if one does not exist
- Submit any outstanding VAT returns from last 4 years, will not be able to join without being up to date
- Correct error on VAT returns as soon as possible
- Make sure they know how much is owed, including the amount originally deferred and how much has already been paid
If there is an error in the period of deferment, it may be possible to include the VAT due in connection with the error correction in the VAT payments deferral scheme, the error correction form will need to have been completed and submitted, please see full details towards the end of the notice.