Deferring VAT payments due to coronavirus

Support provided by HMRC

What does this involve?

HMRC is permitting VAT-registered businesses in the UK to delay some tax payments until a later date if they are struggling to pay due to the coronavirus (COVID-19) crisis.

VAT payments due between 20 March 2020 and 30 June 2020 can be deferred. HMRC will not charge any interest or penalties on payments you choose to defer.

Note that you can only defer:

  • quarterly and monthly VAT returns’ payments for the periods ending in February, March and April
  • payments on account due between 20 March 2020 and 30 June 2020
  • annual accounting advance payments due between 20 March 2020 and 30 June 2020

The deferral does not cover payments for VAT MOSS or import VAT.

VAT refunds and reclaims will be paid by the government as normal but cannot be offset against the deferred payments.

Am I eligible?

Yes, if you’re a UK VAT-registered business and have a VAT payment due between 20 March 2020 and 30 June 2020.

What does this cost?

There is no cost to defer your payments. HMRC will not charge interest or penalties.

Who is this for?

VAT-registered businesses in the UK who are experiencing cash flow issues due to the coronavirus can defer their VAT payments.

How long does this take?

Any payments deferred must be paid by 31 March 2021.


Important information

You do not need to tell HMRC that you’re deferring your VAT payment, but you do still need to submit your VAT returns on time.

If you normally pay by direct debit, be sure to cancel the direct debit with your bank to avoid payment being taken.

For any payments you choose to defer, you must pay the VAT due by 31 March 2021.

Any VAT payments due after 30 June 2020 must be paid as usual.

Next steps

Visit the UK Government website for more information.

Support provided by HMRC

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