COVID-19: Deferral of VAT Payments

As part of the government’s support for businesses during COVID-19, HMRC gave businesses the option of deferring their VAT payments if they were unable to pay on time, without incurring late payment interest or penalties. Payment of VAT falling due between 20 March and 30 June 2020 can be deferred until 31 March 2021.

You must continue to file your VAT return on time, even if you defer payment.

Please remember that the option to defer paying VAT ends on 30 June 2020. This means that VAT returns with a payment due date after 30 June must be paid in full, on time.

If you have not deferred any VAT payments, you do not need to take any further action. If you have deferred paying your VAT and normally pay by Direct Debit you should now reinstate it.

You should do this at least three working days before submitting your VAT return in order for HMRC to take payment. For further details go to GOV.UK and search for 'Pay your VAT bill'.

Remember, any VAT payments you have deferred during this period should be paid in full on or before 31 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 advice and information on other support available, please go to GOV.UK and search 'Business support'.

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