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Deferral of VAT payments

Available: Now

Region: UK Wide

Overview

If you deferred VAT payments due between 20th March and 30th June 2020 and still have payments to make, you can:

  • pay the deferred VAT in full now
  • join the VAT deferral new payment scheme – the online service is open between 23 February 2021 and 21 June 2021
  • contact HMRC on Telephone: 0800 024 1222 by 30rdJune 2021 if you need extra help to pay

pay your deferred vat in full

If you were unable to pay in full by 31st March 2021, you may still be able to avoid being charged penalties or interest by either:

Join the VAT deferral new payment scheme

The VAT deferral new payment scheme opened on 23rd February 2021 up to and including 21st June 2021.

The new scheme lets you:

  • pay your deferred VAT in equal instalments, interest free
  • choose the number of instalments, from 2 to 11 (depending on when you join)

Instalment options available to you
When you decide to join the scheme will determine the maximum number of instalments that are available to you.

HOW TO JOIN 

Before joining, you must:

  • have your VAT registration number
  • create your own Government Gateway account (if you do not already have one)
  • submit any outstanding VAT returns from the last 4 years – otherwise you'll not be able to join the scheme
  • correct errors on your VAT returns as soon as possible
  • make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid

To use the online service, 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
  • pay the first instalment when you join
  • pay your instalments by Direct Debit (if want to use the scheme but cannot pay by Direct Debit, there's an alternative entry route for you - see below for information)

Join the scheme now

If you join the scheme, you can still have a Time to Pay arrangement for other HMRC debts and outstanding tax.

If you cannot use the online service
There may be circumstances where you cannot use the online service, for example if you:

  • do not have a UK bank account
  • cannot pay by Direct Debit
  • have dual signatories on your account

If you want to join the new payment scheme, but cannot use the online service, contact the COVID-19 helpline on Telephone: 0800 024 1222. An adviser will help you join.

Correcting errors on your VAT returns relating to the VAT payments deferral scheme

The VAT deferral period covered accounting periods for:

  • February 2020
  • March 2020
  • April 2020
  • May 2020 - for payment on account customers and certain non-standard tax periods only, in addition to the above periods

If you notice an error on a VAT return which relates to a period covered by the scheme, you should:

  1. Fill in form VAT652
  2. Send it to the VAT Error Correction Team

Deferring extra payments resulting from error corrections
You cannot include extra payments after you've joined the scheme. Any error correction relating to the deferral period that is notified to HMRC after 31 March 2021, cannot be deferred.

You may be contacted by HMRC if they have carried out a VAT compliance check and found that extra payments are due for the deferral period.  These extra payments cannot be deferred if notified to you after 31 March 2021 and interest will apply.

If you are not able to pay your deferred VAT

If you're still unable to pay and need more time, find out what to do if you cannot pay your tax bill on time.

For advice and information on other support available, see Coronavirus updates: support for your business.

                                

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