Covid-19 Information

VAT Payment Deferral

08.06.21

The VAT deferral new payment scheme is open for all businesses who deferred paying VAT due between March 20 and June 30 2020 and were unable to pay in full by March 31 2021.

Monday 21 June is the last day you can join this scheme. If you join by this date you can apply to spread these payments across up to eight instalments.

You can join quickly and simply online without needing to call HMRC. To find out more, including what you need to sign up for online, go to GOV.UK and search ‘VAT deferral’.

If you have deferred paying VAT, you may be charged a 5% penalty and/or interest if you do not join the VAT deferral new payment scheme by the deadline of June 21, pay in full by June 30, or get in touch with us to make an alternative arrangement to pay by June 30 2021.

If you’re still unable to pay and need more time, please contact HMRC – go to GOV.UK and search ‘if you cannot pay your tax bill on time’.

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Businesses due to make a VAT payment between Friday 20 March and Tuesday 30 June did not have to make that payment.

Returns should have been made as usual but direct debit payments could be cancelled. No specific approval was needed from HMRC. The amounts deferred should be paid on or before 31 March 2021.

The scheme ended on the 30 June and businesses needed to reinstate the direct debit payments.

Further information about the deferral of VAT payments due to coronavirus (COVID-19) can be found here.

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