If you deferred VAT payments due between 20th March and 30th June 2020 and still have payments to make, you have the following options:
- pay the deferred VAT in full, on or before 31st March 2021
- join the new VAT deferral payment scheme – the online service opens on the 23rd February till the 21st June 2021
You may be charged interest or a penalty if you do not:
- pay the deferred VAT in full by 31st March 2021
- opt into the new payment scheme by 21st June 2021
- agree extra help to pay with HMRC by 30th June 2021
Paying your deferred VAT in full
You do not need to contact HMRC.
If you want to join the new scheme
The VAT deferral payment scheme will be open from 23rd February till midnight on the 21st June 2021.
If you are on the VAT annual accounting scheme or the VAT payment on account scheme, you will be invited to join the new payment scheme next month (March).
The new scheme lets you:
- pay your deferred VAT in interest free equal instalments
- choose the number of instalments, from 2 to 11 (depending on when you join)
To access the scheme, you must:
- join the scheme yourself, your accountant cannot do this for you
- still have deferred VAT to pay
- be up to date with your VAT returns
- join by the 21st June 2021
- pay the first instalment when you join
- pay your instalments by Direct Debit
If you join the scheme, you can still apply for a Time to Pay arrangement for other HMRC debts and taxes.
Instalment options available to you
The date of registration will determine the maximum number of payments:
11 for those who register before the 19th March
10 for those who register before the 21st April
9 for those who register before the 19th May
8 for those who register before the 21st June
Before joining the scheme, you must:
- 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
More updates and guidance on the new system are expected over the next few weeks, we will publish them here when they are released.