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Paying VAT deferred due to Covid-19

23 February 2021

Did you defer your VAT payments between 20 March and 30 June 2020? You can pay now or join the VAT deferral new payment scheme.

Any VAT payments deferred due to Covid-19 between 20 March and 30 June 2020 that haven’t been paid need to be:

  • Paid in full on or before 31 March 2021
  • Join the VAT deferral new payment scheme. The online service is open between 23 February 2021 and 21 June 2021. The new scheme lets you pay your deferred VAT in equal instalments, interest free and depending on when you join the number of instalments will be from 2 to 11.
  • Contact HMRC on 0800 024 1222 by 30 June 2021 if you need extra help to pay.

You may be charged interest or a penalty if you do not:

  • Pay the deferred VAT in full by 31 March 2021
  • Opt into the new payment scheme by 21 June 2021
  • Agree extra help to pay with HMRC by 30 June 2021

If you wish to join the scheme there are different instalment options available. The month you decide to join the scheme will determine the maximum number of instalments that are available to you. If you join the scheme in March, you’ll be able to pay your deferred VAT in 11 instalments or fewer. If you join the scheme in June there will be 8 instalments or fewer.

Follow the link to join the scheme or if you need more help or you’re still unable to pay and need more time contact us and we can help.

https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19