VAT Deferral | UK-wide

Summary:

Businesses who deferred VAT between 20 March 2020 and 30 June 2020, and still have payments to make, can:

  • pay the deferred VAT in full on or before 31 March 2021
  • opt in to the VAT deferral new payment scheme when it launches in 2021
  • contact HMRC if you need more help to pay
Eligibility criteria:

All VAT-registered UK businesses are eligible.

Additional information:

Pay your deferred VAT
You can pay your deferred VAT in full by 31 March 2021.

You do not need to contact HMRC.

Use the new payment scheme
You cannot opt in yet. The online opt in process will be available in early 2021. You must opt in yourself, your agent cannot do this for you.

Instead of paying the full amount by the end of March 2021, 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 instalments without adding interest
  • select the number of instalments from 2 to 11 equal monthly payments

To use this scheme you must:

  • still 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 opt in to the scheme, you can still have a time to pay arrangement for other HMRC debts and outstanding tax.

Support organisation:
  • HMRC
Find out more:
VAT deferral
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