VAT Deferral

What is VAT deferral?

When securing finance for assets such as cars, construction equipment and agriculture machinery under hire purchase, there’s usually a requirement for the VAT to be paid upfront.

While it’s fully recoverable for VAT-registered businesses, this initial payment of VAT can put additional pressure on cash flow for businesses.

We can offer an option to defer the VAT for up to 3 months from the date of the finance agreement, giving you additional time to pay.

Who is eligible for VAT deferral?

All businesses within the UK which are registered for VAT can apply for defer VAT for 3 months on all hire purchase agreements for assets such as machinery, cars, construction equipment and agriculture machinery.

How does VAT deferral help my business?

The requirement to make the next VAT payment is essentially delayed for three months, meaning you will be able get the refund from the HMRC before the VAT is due to be paid. This will assist businesses with short term cashflow problems.

Is the VAT deferral scheme compulsory?

No, the scheme is not compulsory. Businesses can continue to stick to their current payment due dates and pay their VAT as normal. However, it is beneficial for businesses cash flow to use the VAT deferral option on purchases.

How to apply for VAT deferral

If you would like further information about vat  deferral options, simply fill in the form and we will contact you. If you want to speak to someone directly, you can call us on 0115 958 6872 and a member of our team will be happy to speak to you. Alternatively, email us at [email protected].