If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you 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

 

How can I pay my deferred VAT?

You can pay your deferred VAT in full by 31 March 2021 by clicking here

You do not need to contact HMRC.

How can I opt in to the new payment scheme?

You cannot opt in yet. However, the online opt in process will be available in early 2021. Please note that you must opt in yourself and your agent will be unable to 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

Please note that to use this scheme you must:

  • still have deferred VAT to pay
  • be up to date with your VAT returns
  • opt in before the end of March 2021
  • pay the first instalment before the end of March 2021
  • 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.

How can I ensure that I am ready to opt in to the new payment scheme?

If you want to ensure that you are ready for the new scheme, you must:

  • create your own Government Gateway account if you don’t already have one
  • submit any outstanding VAT returns from the last 4 years. You will not be able to join the scheme if you have not done so
  • correct errors on your VAT returns as soon as possible. Corrections received after 31 December 2020 may not show in your deferred VAT balance
  • make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid

You should also:

  • pay what you can as soon as possible to allow us to show the correct deferred VAT balance
  • consider the number of equal instalments you’ll need, from 2 to 11 months

 

What if I am still not able to pay my deferred VAT?

If you are still unable to pay and need more time, find out what to do if you cannot pay your tax bill on time by clicking here.

 

If you have any questions regarding paying or deferring your VAT, please contact your usual Partner or Manager or call us on 01942 242 245 and we will be happy to help.