VAT Deferral | UK-wide

Summary:

If you deferred VAT payments due between 20 March and 30 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 30 June 2021 if you need extra help to pay

The new payment 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)

You may be charged interest or a penalty if you do not either:

  • join the new payment scheme by 21 June 2021 or;
  • pay the deferred VAT in full by 30 June 2021
Eligibility criteria:

To join the new VAT deferral payment 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
  • pay the first instalment when you join
  • pay your instalments by Direct Debit (if you cannot pay by Direct Debit, contact the COVID-19 helpline on Tel 0800 024 1222)

If you don't wish to opt in, you can pay your deferred VAT in full by 30 June 2021. You do not need to contact HMRC.

Additional information:

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

The following table sets out the monthly joining deadlines (to allow for Direct Debit processing) and the corresponding number of maximum instalments (including the first payment):

If you join by Number of instalments available to you
19 March 2021 11
21 April 2021 10
19 May 2021 9
21 June 2021 8

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

How to join
The online service to join the VAT deferral new payment scheme is open from 23 February 2021 up to and including 21 June 2021. Join the VAT deferral new payment scheme now.

Support organisation:
  • HM Revenue & Customs
Find out more:
VAT deferral
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