Paying Back VAT Deferred Due To Coronavirus

Information has been added on penalties or interests that may be charged if you do not pay in full, or make an arrangement to pay, and how you may still be able to avoid these charges.

The webpage below details how to pay VAT payments deferred between 20^th March 2020 and 30 June 2020 you can:

Pay the deferred VAT in full now
Join the VAT deferral new payment scheme – the online service is open between 23^rd February 2021 and 21 June 2021
Contact HRMC on 0800 024 1222 by 30^th June if you need extra help to pay

You may be charged a 5% penalty or interest if you do not pay in full or make an arrangement to pay by 30^th June 2021

Pay Your Deferred VAT In Full

If you were unable to pay back in full by 31 March 2021, you may still be avoiding being charged penalties or interests by either:

Joining the new payment scheme by 21^st June 2021
Paying your deferred VAT in full by 30^th June 2021

Join the VAT Deferral New Payment Scheme

The VAT deferral new payment scheme is open from 23^rd February 2021 up to including 21^st June 2021

The new deferred 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.

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)

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19^th March 2021 11

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21^st April 2021 10

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19^th March 2021 9

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21^st June 2021 8

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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 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 June 2021
Pay the first instalment when you join
Pay your instalments by Direct Debit (if you want to use the scheme but cannot pay by Direct Debit, there’s an alternative entry route for you)