During the Covid 19 pandemic, HMRC has allowed VAT registered businesses to defer the payment of any VAT which fell due between 20th March and 30th June without incurring any interest or penalties.

This period is now almost at an end and VAT due for periods ended on 31st May will need to be paid on time by 7th July.

If you have deferred the payment of VAT during this time and normally pay by Direct Debit, you will need to reinstate your DD instruction. This should be done at least 3 working days before submitting your VAT return to allow HMRC to take the payment.

Any outstanding VAT which has been deferred during this period should be cleared in full by 31st March 2021. You can make ad hoc payments or additional payments with your subsequent VAT returns to reduce the amount outstanding, if you wish.

If you are unable to pay the VAT due and need additional time to pay, please contact HMRC before the payment is due.

For help go to GOV.UK and search for ‘If you cannot pay your tax bill on time’, or call 0300 200 3835. If you do call, please quote ‘V1’.

For more information on the VAT deferral please see HMRC’s website here: https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19 

For advice and information on other support available, please go to GOV.UK and search ‘Business support’


Alison Unsworth Expert

Alison Unsworth