VAT deferred due to coronavirus (COVID-19)

This scheme has now closed. 

As part of the Winter Economy Plan the Government announced that businesses who deferred VAT due from 20 March to 30 June 2020 will now have the option to pay in smaller payments over a longer period.

Instead of paying the full amount by the end of March 2021, you can make smaller payments up to the end of March 2022, interest free. You will need to opt into the scheme, and if you do, this means that your deferred VAT liabilities do not need to be paid by the end of March 2021.

The VAT deferral new payment scheme will require a direct debit to be set up as part of the digital opt-in process and this must be done by the authorised bank account holder only. HMRC will communicate the details of the scheme and its operation in time for you to complete the opt-in process. If you can pay your deferred VAT, you should still do so by 31 March 2021.

You should contact HMRC’s Time to Pay service if you need more help to pay deferred VAT.

All businesses that took advantage of the VAT deferral are eligible and can use the scheme.

More information can be found here.

The information that we have provided is for general purposes only and therefore does not constitute professional advice. Appropriate professional advice should be sought for individual circumstances before any further action is taken.