VAT deferred due to coronavirus

If you chose to defer your VAT payment between 20 March and 30 June 2020; which covered the quarters ending February 2020, March 2020 and April 2020, and it is still owing, you can:

  1. Pay the deferred VAT in full on or before 31 March 2021 and there is no need to contact HMRC
  2. Opt in to the VAT deferral new payment scheme when it launches in 2021
  3. Contact HMRC if you need more help to pay

You cannot opt in yet, the online process will be available soon and you must opt in yourself, as your agent cannot do this for you.

It means that instead of paying the full amount by the end of March 2021, you can make from 2 to 11 equal smaller monthly instalments, interest free. But all instalments must be paid by the end of March 2022.

In order to apply to use this scheme you must:

  • Still have deferred VAT to pay
  • All VAT returns must be up to date
  • You opt in before 31 March 2021
  • Make the first instalment payment at the time of opting in

If you have a time to pay arrangement for other HMRC debts and outstanding tax these are not affected. 

If you have any queries or require guidance please contact the Small Business team.