Pay VAT deferred due to Covid 19

Support provided by HMRC

What does this involve?

HMRC permitted VAT-registered businesses in the UK to delay VAT payments due between 20 March 2020 and June 30 2020 until a later date if they were struggling to pay due to the coronavirus (Covid-19) crisis.

If you deferred VAT between 20 March and 30 June 2020, these payments are now due.

If you still have payments to make, you can:

  • pay the deferred VAT in full on or before 31 March 2021
  • opt in to the new VAT deferral payment scheme when it launches in 2021
  • contact HMRC if you need more help to pay

If you opt for the new VAT deferral payment scheme, you can:

  • pay your deferred VAT in instalments without adding interest
  • select the number of instalments, choosing from 2 to 11 equal monthly payments

To use the new payment scheme, you 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
  • pay all instalments by the end of March 2022

If you opt in to the scheme, you can still have a time to pay arrangement for other HMRC debts and outstanding tax.

The online opt-in process is not yet open - it will be available in early 2021. Check the UK Government website for updates.

You must opt in yourself, your agent cannot do this for you.

Am I eligible?

Yes, if you’re a UK VAT-registered business and still need to make VAT payments that were deferred between 20 March 2020 and 30 June 2020.

What does this cost?

There is no additional cost associated with your payments. HMRC will not charge interest or penalties.

Who is this for?

VAT-registered businesses in the UK who deferred VAT payments in 2020 due to the coronavirus (Covid-19) pandemic.

How long does this take?

Any payments deferred must be paid by 31 March 2021.

 

Important information

The online opt-in process for the new VAT deferral payment scheme is not yet open - it will be available in early 2021. Check the UK Government website for updates.

You must opt in yourself, your agent cannot do this for you.

Next steps

Visit the UK Government website for more information and details of how to opt in to the payment scheme.

Support provided by HMRC

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