Who is it aimed at?
- Businesses who deferred their VAT payments due between 20th March 2020 and 30th June 2020 and have yet to pay it over to HMRC.
What 3 options are presently open to these businesses?
- Pay the deferred VAT over in full on or before 31st March 2021.
- Opt into the VDNPS online service between 23rd February 2021 and 21st June 2021.
- Contact HMRC on 0800 0241222 if you want to ask for additional time to pay above and beyond the time offered through the VDNPS.
What happens if you don’t take up one of these 3 options?
- It could result in you incurring penalties and interest.
What happens if you opt into the VDNPS?
- Depending upon when you join the scheme, you can spread the deferred VAT payments up to 11 instalments.
- The payments will be interest free.
How do you join the VDNPS?
The online service will be available from 23rd February to 21st June 2021.
- If you are on the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme you will be invited to join the VDNPS sometime later in March. A definitive date has yet to be agreed.
Are there any conditions attached to opting into the VDNPS?
You must have deferred VAT which was due between 20th March and 30th June 2020.
- You are up to date with your VAT returns.
- You must have corrected any errors on your VAT returns.
- You must pay the first instalment at the time of joining the scheme.
- If you do not already have a Government Gateway account you will need to create one.
- Businesses must opt into the scheme, agents cannot do this on their behalf.
- If for some reason you cannot use the online service then you need to contact HMRC on 0800 0240122.