HMRC has announced that VAT payments can be deferred under the following conditions. HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities. See HMRC support for businesses page here >
If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you can:
- join the VAT deferral new payment scheme – the online service is open between 23 February and 21 June 2021
- contact HMRC if you need more help to pay
If you want to opt in to the new payment scheme, you can make up to 11 smaller monthly instalments, interest free. All instalments must be paid by the end of March 2022.
The scheme will allow you to pay your deferred VAT in up to 11 equal monthly instalments without adding interest. To use this scheme you must:
- have deferred VAT to pay
- be up to date with your VAT returns
- be able to pay the deferred VAT by Direct Debit
If you want to join the new scheme
The VAT deferral new payment scheme will be open from 23 February up to and including 21 June 2021.
If you’re on the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme, you’ll be invited to join the new payment scheme later in March 2021. More >
To use the online scheme you must:
- join the scheme yourself, your agent cannot do this for you
- still have deferred VAT to pay
- be up to date with your VAT returns
- join by 21 June 2021