Important information about deferral of VAT payments

Over the past few months, there have been various government support schemes to help businesses through this time. This included the option of deferring VAT payments without penalties or late payment interest if businesses were unable to pay on time. This deferral of payments applied to VAT payments that were due between 20‌‌ March and 30‌‌ June 2020 and these can be deferred until 31‌‌ March 2021.

If you have chosen to defer you VAT payments during the pandemic you must still file your VAT return on time.

When does the scheme end?

The deferral scheme ends on 30th June 2020, after this, all VAT payments must be paid in full and on time. If you have cancelled direct debit VAT payments, this should now be reinstated at least three working days before submitting your VAT return.

There is more information on the GOV.UK website which you can find by searching for 'Pay your VAT bill'.

HMRC has advised that all deferred payments must be paid in full by 31st March 2021. You can reduce the outstanding amount by making ad hoc or additional payments with your subsequent VAT returns.

What do I do if I need more time to pay my VAT bill?

If you need more time to pay your VAT bill, you must contact HMRC before the payment is due. Information is available on GOV.UK if you search for 'If you cannot pay your tax bill on time', alternatively, you can call HMRC on 0300 200 3835. If you do call, please quote 'V1'.

Additional information and advice are available on GOV.UK by searching for business support.

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